Ripple, the prominent blockchain company, has announced its acquisition of Fortress Trust, a chartered trust company based in Nevada with a strong focus on cryptocurrencies and Web3 technologies. This strategic move aims to bolster Ripple's position in the rapidly evolving blockchain and crypto landscape.
The financial terms of the acquisition have not been disclosed by either party. When approached for further details, Ripple chose not to provide additional information. However, an insider with knowledge of the transaction indicated that the acquisition price was below the $250 million Ripple paid in May for custody firm Metaco.
This acquisition marks an expansion of Ripple's regulatory footprint, adding Nevada to its list of licenses, which already includes a New York BitLicense and money transmitter licenses in 30 U.S. states.
Fortress Trust, founded by industry veteran Scott Purcell, specializes in offering financial and regulatory support to blockchain companies. Scott Purcell previously served as the CEO of crypto custodian Prime Trust until 2020. Notably, Prime Trust faced a significant turn of events after Purcell's departure when fellow custodian BitGo terminated its proposed acquisition of the firm, leading to Prime Trust being placed into receivership.
Monica Long, President of Ripple, described the acquisition as a significant step toward fulfilling Ripple's vision of becoming the "one-stop shop" for enterprises seeking solutions to convert, store, and facilitate the movement of value on blockchain networks.
It's worth noting that Ripple had previously become a minority investor in the parent company of Fortress Trust, Fortress Blockchain Technologies, during August 2022. This investment was part of Ripple's commitment to supporting and participating in the growth of Web3 infrastructure providers.
Ripple's acquisition of Fortress Trust underscores the company's commitment to expanding its range of crypto and blockchain services. As the blockchain industry continues to evolve, Ripple aims to play a pivotal role in providing comprehensive solutions for businesses looking to harness the potential of blockchain technology and cryptocurrencies.
