Fortress possesses a Nevada Trust license, enabling them to provide asset custody services, whereas Ripple holds in excess of 30 licenses spanning various jurisdictions within the United States.
Ripple, a financial technology company, has announced its intention to acquire Fortress Trust to acquire additional regulatory licenses in the United States. This development was disclosed in an 8 September announcement.
Fortress Trust specializes in providing regulatory and technological infrastructure for blockchain businesses, and its Nevada Trust license authorizes it to protect financial assets.
This acquisition augments Ripple’s existing licenses as a national money transmitter, which number more than 30.
Additionally, Ripple has a BitLicense, which is required for digital currency enterprises operating in New York.
Monica Long, president of Ripple, emphasized the significance of licenses as a powerful enabler for devising and delivering premium customer experiences to enterprises.
According to Ripple’s announcement, Fortress Trust’s technological and licensing assets align with its business strategies and product roadmap.
In 2022, Ripple invested in Fortress Trust through a seed financing round. Unfortunately, the exact financial parameters of this recent transaction are currently unknown.
“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, stated.
Amid a bear market, Ripple has increased its commercial transactions. In May, the company announced its $250 million acquisition of Metaco, a Swiss digital asset custodian and tokenization provider.
As companies seek to cover gaps in their capabilities, a Ripple executive predicted in January that there would be a surge of acquisitions in the cryptocurrency sector in 2023.
According to the announcement, Ripple intends to invest in Fortress’s primary company, Fortress Blockchain Technologies, and its subsidiary, FortressPay Services. Offering blockchain-based payout services, Ripple asserts its presence in more than 55 countries.
