Despite regulatory troubles, Ripple continues to expand its license portfolio in the US.
Ripple, an American technology company developing the Ripple payment protocol and exchange network, is making noteworthy strides in solidifying its regulatory standing in the United States.
On September 8th, the company announced its acquisition of Fortress Trust, a Nevada-based enterprise with a specialized trust license. This acquisition aims to broaden Ripple’s existing scope of more than 30 regulatory licenses across the US.
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Fortress Trust, which operates under a Nevada Trust license, provides regulatory and technology infrastructure solutions for organizations in the blockchain domain.
Ripple's president, Monica Long, emphasized the significance of the acquisition by saying:
Licenses are a powerful enabler to build and deliver best-in-class customer experiences for enterprises.
Long further noted that the technology and licenses owned by Fortress Trust will strategically complement Ripple’s business and future product development.
Before this complete buyout, Ripple had laid the groundwork by investing in Fortress Trust during a 2022 seed funding round.
Brad Garlinghouse, the CEO of Ripple, shared his optimistic view on the deal.
As an early investor in Fortress Blockchain Technologies, we’ve had a chance to get to know the team, its vision and technology. Since their launch in 2021, they’ve built an impressive business with recurring revenue and a strong roster of both crypto-native and new-to-crypto customers.
This latest deal aligns with Ripple's broader agenda of strategic acquisitions, particularly during unfavorable market conditions. Earlier in May, the company expanded its global footprint by acquiring Metaco, a Swiss firm specializing in digital asset custody, for $250 million.
The new acquisitions may act as a breath of fresh air as the company continues its legal battle with the US Securities and Exchange Commission over the XRP classification. In a recent development, the US regulator is pushing the court to approve its desire to appeal the decision, which classifies XRP as not security when sold to retail investors.
The acquisition of Fortress Trust marks a significant milestone for Ripple as it seeks to reinforce its regulatory and technological position in the United States. As the company continues its strategic investments and acquisitions, Ripple is poised to be a dominant force in shaping the evolving landscape of the blockchain and cryptocurrency sectors.
