American blockchain payments firm Ripple Labs Inc. has announced it is acquiring Fortress Trust, a financial institution that provides licensed Web3 financial, regulatory, and technology infrastructure for blockchain innovators.
What Makes the Deal Unique?
The acquisition of Fortress Trust, a firm that is a part of the Fortress IO Group of companies comes as the very first of such moves from the payments firm since it snatched a historic partial win against the United States Securities and Exchange Commission (SEC) back in July when Judge Analisa Torres ruled that the trading of XRP to retail investors on secondary marketplaces does not constitute an investment contract.
This acquisition is well-timed and it will see Fortress Trust use its growing enterprise crypto business to boost Ripple’s growth and expansionary roadmap. As a startup with promises, Ripple Labs was one of the first investors in Fortress Trust, a situation that has further integrated the leadership of both firms.
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
With Fortress Trust making its debut in 2021, Brad Garlinghouse, the Chief Executive Officer of Ripple Labs acknowledged that since their launch, the Fortress team has “built an impressive business with recurring revenue and a strong roster of both crypto-native and new-to-crypto customers,” and as such, positions Ripple to continue to help bootstrap the startup’s potentials.
The financial commitment of the deal remains undisclosed but from indications, Fortress Trust will also be able to benefit from the robust network that Ripple has built as a dominant player in the remittance ecosystem.
Expanding Ripple Ecosystem
Just like the saying, ‘Fortune favors the Bold,’ Ripple is now benefiting from its decision to fight the SEC’s regulation by enforcement tactics. With the odds now appearing to be in its favor, Ripple has started expanding its ecosystem with recent acquisitions spanning institutional custody service provider, Metaco.
The company is also growing its partnerships with both mainstream payment services providers like SWIFT and WestPac as well as with countries such as the Republic of Palau and Bhutan. With its current tempo, Ripple is on track to become the true behemoth of the Web3.0 and blockchain-based fintech world.
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