American blockchain payments firm, Ripple Labs Inc., has made an announcement regarding its acquisition of Fortress Trust, a financial institution that offers licensed Web3 financial, regulatory, and technology infrastructure for blockchain innovators.
This acquisition marks a significant move for Ripple Labs, as it is the first of its kind since the company achieved a partial victory against the United States Securities and Exchange Commission (SEC) in July. The ruling by Judge Analisa Torres stated that the trading of XRP to retail investors on secondary marketplaces does not qualify as an investment contract.
The timing of this acquisition is strategic, as it allows Fortress Trust to leverage its growing enterprise crypto business to support Ripple’s growth and expansion plans. Ripple Labs had previously invested in Fortress Trust, further solidifying the relationship between the two companies.
Brad Garlinghouse, the CEO of Ripple Labs, acknowledged the impressive progress made by the Fortress team since their launch in 2021. He highlighted their recurring revenue and strong customer base, both within the crypto-native community and among those new to the crypto space. This acquisition positions Ripple to continue nurturing the potential of the startup.
The financial details of the deal have not been disclosed. However, it is expected that Fortress Trust will benefit from Ripple’s extensive network as a dominant player in the remittance ecosystem.
Ripple’s decision to challenge the SEC’s regulatory tactics has proven advantageous, allowing the company to expand its ecosystem. Recent acquisitions, including institutional custody service provider Metaco, and partnerships with mainstream payment service providers like SWIFT and WestPac, as well as countries such as the Republic of Palau and Bhutan, demonstrate Ripple’s commitment to becoming a prominent force in the Web3.0 and blockchain-based fintech industry.