Key Takeaways
- The deal gives Ripple the license to offer services in Nevada
- Ripple bought a minority stake in Fortress in August 2022
Ripple, a prominent player in the cryptocurrency space, has acquired Fortress Trust, a Nevada-based chartered trust company specializing in cryptocurrency and Web3 services. This move signifies Ripple’s commitment to expanding its reach.
Fortress Trust’s Expertise in Blockchain Infrastructure
Fortress Trust is known for providing financial and regulatory infrastructure to blockchain companies. Founded by Scott Purcell, a former CEO of crypto custodian Prime Trust, the company has gained recognition for its support of crypto-native ventures.
Ripple’s Previous Investment and Acquisition
Ripple previously invested in Fortress Trust during its seed round in August 2022. This acquisition follows Ripple’s $250 million acquisition of Swiss tokenization firm Metaco, further strengthening its presence in the crypto custodial services sector.
Ripple’s Expansion of Regulatory Licenses
One outcome of this acquisition is Ripple’s expansion of its regulatory licenses. Nevada joins the list of regions where Ripple holds licenses, which already includes a New York BitLicense and money transmitter licenses in 30 U.S. states. This expansion highlights Ripple’s commitment to being a trusted and compliant entity in the cryptocurrency industry.
Excitement from Ripple’s CEO and President
Brad Garlinghouse, CEO of Ripple, expressed excitement about the acquisition, commending Fortress Trust for its impressive business, recurring revenue streams, and diverse customer base. Monica Long, President of Ripple, echoed this sentiment, emphasizing the transformative potential of the acquisition and the power of regulatory licenses in enhancing the customer experience.
Ripple’s Legal Battle with the SEC
This acquisition comes as Ripple continues to fight a legal battle with the U.S. Securities and Exchange Commission over allegations of violating securities law in relation to XRP.
