Ripple has acquired Fortress Trust, a chartered trust company and financial institution focused on cryptocurrencies.
The news follows the enterprise crypto company’s recent announcement that it had agreed the acquisition for the Web3 provider. According to the US-based blockchain company behind the XRP cryptocurrency, the acquisition of Fortress Trust comes hot on the heels of the major coup that saw it snap up crypto custody company Metaco.
Acquisition gives Ripple “a lot of optionality”
Fortress Trust is regulated in Nevada, holding a Nevada Trust license. This means Ripple has added to its portfolio of licensed subsidiaries. Among these, the company has a New York BitLicense and over 30 Money Transmitter Licenses in multiple US states. Ripple also holds an in-principle Major Payment Institution License issued by the Monetary Authority of Singapore.
Monica Long, President at Ripple, said in a press release:
“Licenses are a powerful enabler to build and deliver best-in-class customer experiences for enterprises using Ripple’s crypto infrastructure across our payments and liquidity solutions.”
According to Long, the acquisition gives Ripple “a lot of optionality” towards improvement of current customer experiences across the company’s existing products. The deal also means Ripple has a new channel to “explore new, complementary products” as it bids to grow its presence for enterprises worldwide.
Ripple did not disclose the financial terms of the deal. However, the San Francisco-based company is reported to have purchased Fortress Trust at an amount significantly lower than the $250 million that was needed to buy Metaco in May this year.
The deal is set to include an investment in Fortress Blockchain Technologies, the Fortress Trust parent company in which Ripple holds a minority stake after participating in its seed funding in 2022. Also poised to receive capital injection is FortressPay services.
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