Ripple, the financial technology company, has taken steps to expand its regulatory licenses in the United States through the acquisition of Fortress Trust. This move was announced on September 8th. Fortress Trust specializes in providing regulatory and technology infrastructure solutions for blockchain organizations and holds a Nevada Trust license, enabling it to custody financial assets.
Ripple’s Expanding License Portfolio
Ripple’s acquisition of Fortress Trust supplements its existing array of licenses in the U.S. Ripple holds more than 30 licenses across the country as a money transmitter and possesses a BitLicense, which is specific to virtual currencies businesses, in the state of New York.
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
Monica Long, President at Ripple, emphasized the importance of licenses in enabling the delivery of exceptional customer experiences for enterprises. The technology and licensing capabilities of Fortress Trust align with Ripple’s business and product roadmap.
Previous Investment in Fortress Trust
Ripple’s involvement with Fortress Trust dates back to 2022 when it initially invested in the company through a seed round. The recent acquisition’s financial terms and transaction amounts have not been disclosed.
Brad Garlinghouse, CEO of Ripple, expressed optimism about Fortress Trust’s growth since its launch in 2021. The company has achieved significant milestones, including building a robust business with recurring revenue and a diverse clientele comprising both crypto-native and newcomers to the crypto space.
Ripple’s Acquisitions Strategy
Ripple has been actively pursuing strategic acquisitions despite the bearish market conditions. In May, the company announced the acquisition of Metaco, a Swiss digital asset custodian and tokenization provider, for $250 million. Ripple had forecasted a wave of acquisitions within the crypto industry in January 2023 to address capability gaps.
Investment in Fortress’s Parent Company
As part of this move, Ripple also plans to invest in Fortress Trust’s parent company, Fortress Blockchain Technologies, and its affiliated entity, FortressPay services. Ripple’s global presence spans more than 55 countries, where it provides payout services using blockchain technology.
Ripple’s acquisition of Fortress Trust represents a strategic expansion of its regulatory licenses in the U.S., aligning with its commitment to delivering enhanced customer experiences and strengthening its position in the crypto and blockchain industry.