While the crypto bear market rages on, the San Francisco-based blockchain payment firm Ripple has undertaken another significant acquisition.
In particular, Ripple has proclaimed its agreement to acquire Fortress Trust, an established institution specializing in offering licensed Web3 financial services and regulatory support. The firm took to X to share this development with the crypto community.
Today, we are announcing intent to acquire Fortress Trust, part of the @Fortress_io suite of companies. Fortress Trust’s financial and regulatory infrastructure complements and expands Ripple’s comprehensive portfolio of blockchain solutions for finance. https://t.co/LIl3cPEur2
— Ripple (@Ripple) September 8, 2023
In the official statement, Ripple noted that Fortress Trust’s unique blend of technology and licensing will play a pivotal role in complementing Ripple’s business operation and development roadmap.
Furthermore, Ripple stated its regulatory licenses portfolio experienced further growth through the acquisition. Ripple highlighted that it now holds over 30 ‘Money Transmitter Licenses’ in the United States. The firm also mentioned its recent regulatory approval from the Central Bank of Singapore.
Ripple Executives React
The CEO of Ripple, Brad Garlinghouse, expressed his enthusiasm for the acquisition. Garlinghouse mentioned that Ripple’s position as an early Fortress Trust investor made acquainted the firm with Fortress Trust’s team and its operations.
Moreover, he acknowledged the developments Fortress Trust built over the last two years, noting that the firm is cash flow positive. Garlinghouse added:
“We’re excited to bring on this team and its technology to accelerate our business and continue pressing our advantage in the areas critical to crypto infrastructure.”
We’ve known the Fortress Trust team now for years – what they’ve achieved in a few short years since incorporation is commendable.
I’m excited to see how Ripple expands in the realm of crypto infrastructure services with the Fortress Trust team! https://t.co/jlXix1GcwA
— Brad Garlinghouse (@bgarlinghouse) September 8, 2023
Ripple’s President, Monica Long, underscored the place of regulatory licenses in improving business operations. She noted that the merger with Fortress Trust will help Ripple provide better services to its existing clients and explore new options.
In her words:
“Acquiring Fortress Trust affords us a lot of optionality to both improve the current customer experience in our existing products and explore new, complementary products.”
Ripple’s Prior Acquisition
It is worth mentioning that the latest development comes on the heels of Ripple’s recent acquisition of a firm specializing in custody solutions. Specifically, Ripple bought Metaco four months ago for $250 million.
Last month, Metaco won two awards in recognition of its worthwhile developments in the crypto and Web3 space.