Ripple Acquires Nevada-Based Fortress Trust

Ripple, a company specializing in blockchain technology, has extended its regulatory footprint by purchasing Fortress Trust, a chartered trust firm based in Nevada that focuses on crypto and Web3 technologies. Although the financial specifics were not revealed, the deal was valued at less than the $250 million Ripple allocated for its May acquisition of Metaco, a custody company.

This acquisition is a calculated move for Ripple, bolstering its regulatory credentials. Through this purchase, the firm has obtained a Nevada-based regulatory license, adding to its existing New York BitLicense and money transmission licenses in 30 other U.S. states. Regulatory permissions are invaluable in the rapidly evolving crypto and blockchain sectors, which face increasing governmental oversight. Obtaining a license in Nevada could potentially simplify Ripple’s operations within this challenging regulatory framework.

Fortress Trust was established by Scott Purcell, an experienced industry professional who was the CEO of Prime Trust until 2020. Notably, Prime Trust entered receivership following his departure. Fortress Trust delivers financial and regulatory solutions for blockchain firms, services that are somewhat parallel to what Ripple offers.

Ripple’s president, Monica Long, noted that this acquisition is in line with the company’s goal to become a full-service facilitator for financial operations based on blockchain technology. However, it’s important to mention that the real-world impact of this acquisition is yet to be assessed, as specific metrics to measure its success have not been disclosed.

The acquisition wasn’t a first-time engagement between Ripple and Fortress Trust; Ripple became a minority stakeholder in Fortress Blockchain Technologies, the parent company of Fortress Trust, in August 2022. Though this suggests a strategic synergy between the two firms, the exact implications of this prior investment in relation to the current acquisition are still ambiguous.

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