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Ripple purchases Fortress Trust, broadening its licensing portfolio in the United States.
Financial technology company Ripple is broadening its array of regulatory licenses in the United States through the acquisition of Fortress Trust, as stated in an announcement on Sept. 8.
Fortress Trust offers regulatory and technological infrastructure for blockchain enterprises. The firm possesses a Nevada Trust license that permits it to hold financial assets. This acquisition adds to the more than 30 licenses Ripple already has nationwide as a money transmitter, including a BitLicense in New York, which is necessary for digital currency businesses operating within the state.
“Licenses serve as a significant enabler to create and provide top-tier customer experiences for enterprises,” remarked Monica Long, president at Ripple. As per Ripple’s announcement, the technology and licensing possessed by Fortress Trust enhances its business and product strategy.
Ripple initially invested in the company in 2022 during a seed funding round. The specifics of the recent transaction, including amounts and other financial details, were not disclosed.
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Today, we are announcing intent to acquire Fortress Trust, part of the @Fortress_io suite of companies. Fortress Trust’s financial and regulatory infrastructure complements and expands Ripple’s comprehensive portfolio of blockchain solutions for finance. https://t.co/LIl3cPEur2
— Ripple (@Ripple) September 8, 2023
“As an early investor in Fortress Blockchain Technologies, we’ve had the opportunity to understand the team, its vision, and technology. Since their inception in 2021, they’ve established a remarkable business with recurring revenue and a robust clientele of both crypto-native and newcomers to crypto,” stated Brad Garlinghouse, CEO of Ripple.
Ripple has been accelerating its acquisitions during the bear market. In May, the company disclosed the purchase of Metaco, a Swiss digital asset custodian and tokenization provider, for $250 million. A Ripple executive predicted in January that 2023 would witness a surge of acquisitions within the crypto sector, aiding companies in addressing capability gaps.
Ripple intends to invest in Fortress’ parent company, Fortress Blockchain Technologies, and its associated firm FortressPay services, as revealed in the announcement. Ripple asserts its presence in over 55 countries, providing payout services through blockchain technology.
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