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 made significant strides in expanding its reach by acquiring Fortress Trust, a Nevada-based chartered trust company specializing in cryptocurrency and Web3 services. While financial details of the acquisition have not been disclosed, this move signifies Ripple’s commitment to expanding its reach.
Fortress Trust is known for its expertise in providing financial and regulatory infrastructure to blockchain companies. Founded by Scott Purcell, a well-known figure in the industry who formerly served as the CEO of crypto custodian Prime Trust, the company has gained recognition for its support of crypto-native ventures.
The acquisition of Fortress Trust comes on the heels of Ripple’s previous investment in the company during its seed round in August 2022. It also follows Ripple’s notable $250 million acquisition of Swiss tokenization firm Metaco, further bolstering its presence in the crypto custodial services sector.
One of the notable outcomes 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. Regulatory compliance is increasingly crucial in the cryptocurrency landscape, and this expansion of licenses underscores Ripple’s commitment to being a trusted and compliant entity in the industry.
Brad Garlinghouse, CEO of Ripple, expressed excitement about the acquisition, commending Fortress Trust for its impressive business, recurring revenue streams, and diverse customer base. He emphasized the strategic significance of integrating Fortress Trust’s technology and expertise into Ripple’s operations, highlighting the pivotal role of crypto infrastructure in their growth strategy.
“They’ve built an impressive business with recurring revenue and a strong roster of both crypto-native and new-to-crypto customers,”
Monica Long, President of Ripple, echoed this sentiment, emphasizing the transformative potential of the acquisition. She described regulatory licenses as a “powerful enabler” for enhancing the customer experience and noted that the acquisition opens up avenues for both improving existing products and exploring innovative offerings in the crypto space.
The latest development comes amid Ripple fighting a long-drawn legal battle with the U.S. Securities and Exchange Commission over whether or not Ripple violated securities law in making XRP available to retail investors.
