Blockchain payments firm Ripple is expanding its crypto services footprint with the acquisition of Nevada-based trust company Fortress Trust. The purchase bolsters Ripple’s regulatory footing in the U.S. crypto market.
Fortress Trust provides custody, trading, and other services tailored for blockchain companies. Ripple took a minority stake in Fortress’ parent last August during a seed financing round.
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Ripple’s Fortress Trust acquisition priced below that of Metaco’s $250 million
While purchase terms were undisclosed, the price reportedly falls below the $250 million Ripple paid for crypto custody firm Metaco in May. The deal adds a Nevada regulatory license to the firm’s existing BitLicense and 30 state money transmitter registrations.
Ripple President Monica Long said acquiring Fortress Trust advances the company’s goal of becoming a one-stop crypto shop for enterprises. The company is strategically assembling the infrastructure needed for mainstream blockchain adoption.
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The Fortress Trust acquisition is one of the strategic ones after Ripple won the prolonged lawsuit against the SEC. The SEC filed a lawsuit in 2020 alleging that XRP is a security. However, the blockchain firm stood its ground and fought for over two years to earn justice. While the victory pushed the price of XRP considerably up, it was short-lived, to say the least. Nevertheless, the crypto firm is steadfast in its developments and projects