Cryptocurrency Company Ripple to Acquire Fortress Trust

Ripple expands its services beyond blockchain-enabled payments

Ripple, a cryptocurrency company, announced on Friday its acquisition of Fortress Trust, a startup specializing in crypto infrastructure. This acquisition will give Ripple a license in Nevada and allow it to expand its services beyond blockchain-enabled payments.

Fortress Trust aims to help large enterprises interact with digital currencies

Founded in 2021 by Scott Purcell, Fortress Trust aims to assist large enterprises in their interactions with digital currencies. Purcell, who has a background in equity and debt crowdfunding, was formerly the CEO of Prime Trust, a crypto custodian.

Ripple’s role as a cross-border payments firm

Ripple is primarily known for its role as a cross-border payments firm. It uses a blockchain-based messaging system similar to SWIFT to facilitate fast transactions between banks and other financial institutions.

Ripple’s partners and the use of XRP

Ripple has partnered with various companies, including Modulr from Britain, Nium from Singapore, and SBI Remit from Japan. Ripple also utilizes XRP, a cryptocurrency it owns a significant portion of, for cross-border payments between banks and financial institutions.

Ripple’s struggles with the U.S. Securities and Exchange Commission (SEC)

Ripple has faced challenges in recent years, with the SEC filing a lawsuit against the company. The lawsuit alleges that XRP should be considered a security and accuses Ripple’s executives of selling over $1 billion worth of the token to investors in an illegal securities offering.

Previous partnerships and legal victories

Ripple had previously partnered with MoneyGram, but the partnership was abandoned following the lawsuit. However, Ripple secured a key victory when a judge ruled that the XRP token was not necessarily a security on its face.

Ripple’s recent acquisitions and regulatory permits

Fortress Trust is Ripple’s second acquisition this year, following the purchase of Swiss provider Metaco. Ripple already holds a New York BitLicense and 30 money transmitter licenses across the U.S. The company is also seeking an e-money license with the Irish central bank.

Fortress Trust’s role in the crypto custody space

Fortress Trust specializes in crypto custody, helping companies and individuals securely store their tokens in decentralized addresses. The startup works with various industries, including crypto exchanges, NFT marketplaces, and real estate.