- Ripple acquires Fortress Trust, enhancing its cryptocurrency infrastructure and expanding beyond blockchain payments.
- The acquisition price for Fortress Trust is rumored to be less than $250 million, paid for Metaco.
- Ripple’s strategic expansion adds Nevada to its regulatory licenses, now covering 30 U.S. states and New York.
On Friday, Ripple, a prominent cryptocurrency firm, revealed its acquisition of Fortress Trust, a fledgling company with a niche focus on cryptocurrency infrastructure. This strategic move grants Ripple a valuable license in Nevada and paves the way for its expansion beyond its traditional stronghold of blockchain-based payment solutions.
Even though Ripple didn’t disclose the financial terms of this acquisition, according to an individual familiar with the situation, the acquisition price for Fortress Trust is reported to be below the $250 million Ripple paid for the custody firm Metaco back in May.
Moreover, with this acquisition, Ripple is expanding its regulatory reach by adding Nevada to its list of acquired licenses. Notably, this list already includes New York BitLicense and money transmitter licenses in a total of 30 U.S. states.
“As an early investor in Fortress Blockchain Technologies, we’ve had a chance to get to know the team, its vision and technology. Since their launch in 2021, they’ve built an impressive business with recurring revenue and a strong roster of both crypto-native and new-to-crypto customers.”
Brad Garlinghouse, CEO of Ripple
Fortress Trust, which specializes in offering financial and regulatory support to blockchain companies, was established by Scott Purcell, a seasoned figure in the blockchain industry. Purcell had previously served as the CEO of crypto custodian Prime Trust until his departure in 2020. It’s worth noting that Prime Trust faced receivership proceedings following the termination of its intended acquisition by fellow custodian BitGo, a development that occurred several years after Purcell had left the company.
Monica Long, President of Ripple, characterized this acquisition as a significant step towards the company’s overarching goal of becoming the ultimate destination for enterprises seeking comprehensive solutions to convert, store, and transfer value on the blockchain.
Additionally, in August 2022, Ripple took on a minority investment role in Fortress Trust’s parent entity, Fortress Blockchain Technologies, as part of the latter’s seed round within the realm of Web3 infrastructure providers. Additionally, Ripple has outlined its intentions to make investments in Fortress’s parent company, Fortress Blockchain Technologies, as well as its associated entity, FortressPay services, as disclosed in the announcement. Ripple asserts its global presence, spanning across more than 55 countries, where it provides payout services leveraging blockchain technology.
Ripple has been actively pursuing strategic deals despite the challenging bear market conditions. One notable move came in May when the company unveiled its acquisition of Metaco, a Swiss-based digital asset custodian and tokenization specialist, for a substantial sum of $250 million. Back in January, a Ripple executive had already predicted that 2023 would witness a surge in acquisitions within the cryptocurrency sector, as companies sought to address and enhance their capabilities through such strategic moves.
