Financial technology company Ripple is expanding its portfolio of regulatory licenses in the US with the acquisition of Fortress Trust announced on September 8th.
Fortress Trust provides regulatory and technological infrastructure for blockchain organizations. The company has a Nevada Trust license, which allows it to hold financial assets. The acquisition adds to the more than 30 licenses Ripple holds nationwide as a money transmitter, as well as a BitLicense in New York that is required for digital currency companies operating in the state.
“Licensing is a powerful enabler for building and delivering the best customer experiences for businesses.”said Monica Long, President of Ripple. According to Ripple’s announcement, Fortress Trust’s technology and licenses complement its business and product roadmap.
Ripple first invested in the company in 2022 as part of a seed round. Current transaction amounts and other financial terms were not disclosed.
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
Today we announced our intention to acquire Fortress Trust, part of the @Fortress_io group of companies. Fortress Trust’s financial and regulatory infrastructure complements and expands Ripple’s comprehensive portfolio of blockchain solutions for the financial sector.
“As an early investor in Fortress Blockchain Technologies, we had the opportunity to get to know the team, their vision and technology. Since founding in 2021, they have built an impressive business with recurring revenue and a strong roster of both crypto-native companies and crypto-native customers. as new to the crypto sector,” said Ripple CEO Brad Garlinghouse.
Ripple has accelerated its operations amid the bear market. In May, the company announced the acquisition of Metaco, a Swiss digital asset custodian and tokenization provider, for $250 million. A Ripple executive predicted in January that 2023 would see a wave of acquisitions in the cryptocurrency space, helping companies fill gaps in their capabilities.
The announcement shows that Ripple plans to invest in Fortress parent company Fortress Blockchain Technologies and its subsidiary FortressPay Services. Ripple claims to be present in more than 55 countries and offer payment services via blockchain technology.