Ripple Acquires Fortress Trust, Aims to Expand Beyond Payments

Ripple Acquires Fortress Trust, Aims to Expand Beyond Payments

Ripple, a prominent cryptocurrency firm, reportedly revealed on Friday its intentions to acquire Fortress Trust, a startup with expertise in cryptocurrency infrastructure. This strategic move is aimed at securing a license in the state of Nevada, thereby enabling Ripple to diversify its offerings beyond its primary focus on blockchain-based payment solutions.

The specific details of the acquisition deal between Ripple and Fortress Trust have not been publicly disclosed.

According to CNBC, Fortress Trust, established in 2021 by Scott Purcell, who has extensive experience in equity and debt crowdfunding, specializes in facilitating the engagement of major corporations with digital currencies. Purcell had previously served as the CEO of Prime Trust, a crypto custodian that ceased operations after BitGo opted not to proceed with its acquisition of the company.

Ripple is primarily recognized for its role as a provider of cross-border payment solutions. The company utilizes a blockchain-based messaging system, similar in function to SWIFT, to facilitate fast and secure transactions among a network of banks and other financial institutions.

The blockchain based payment protocol company has established partnerships with various companies, including Modulr in the United Kingdom, Nium in Singapore, and SBI Remit in Japan. Additionally, Ripple utilizes XRP, a cryptocurrency it holds a substantial stake in, for facilitating cross-border payments among banks and other financial entities.

Ripple had previously collaborated with MoneyGram, a partnership that involved using XRP in a pilot program for instantaneous transfers. XRP acted as a "bridge" currency, facilitating fund transfers without the necessity for pre-funded accounts. However, due to the legal lawsuit, MoneyGram and Ripple terminated their partnership in March 2021.

The company has been experiencing growing momentum in its business, especially outside the United States where the majority of its clients are located. When asked if the recent legal ruling would prompt American banks to return to Ripple to utilize its On-Demand Liquidity (ODL) product, Stu Alderoty, Ripple's Chief Legal Officer, indicated that the answer was affirmative.

The acquisition of Fortress marks Ripple's second purchase in 2023. In May, the company entered into an agreement to acquire Metaco, a Swiss firm that offers crypto custody services, for a sum of $250 million.

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