Ripple, the blockchain company, announced in an email on Friday that it has successfully completed the acquisition of Fortress Trust, a chartered trust company based in Nevada specializing in cryptocurrencies and Web3 technologies.
The financial terms of the acquisition were not made public. When CoinCryptoUs reached out to Ripple for additional information, the company chose not to disclose any further details. However, an individual familiar with the situation mentioned that the acquisition price was lower than the $250 million Ripple paid for the custody firm Metaco back in May.
The acquisition expands Ripple's portfolio of regulatory licenses, now encompassing Nevada in addition to its existing credentials, such as the coveted New York BitLicense and money transmitter licenses in 30 U.S. states.
Fortress Trust, established by Scott Purcell, a seasoned professional in the blockchain industry, offers essential financial and regulatory support to blockchain enterprises. Mr. Purcell had served as the CEO of the crypto custodian Prime Trust until 2020. Interestingly, some time after his departure from Prime Trust, the company encountered a challenging situation when it was placed under receivership. This predicament arose following the termination of its planned acquisition by fellow custodian BitGo.
Monica Long, Ripple's president, described the acquisition as bolstering the firm's aim of "becoming the one-stop shop for enterprises looking to convert, store and move value on blockchain."
In August 2022, Ripple took on a minority investor role within the parent company of Fortress Trust, known as Fortress Blockchain Technologies. This strategic move was made as a crucial part of Fortress Blockchain Technologies' initial funding round, focused on bolstering the Web3 infrastructure.