Ripple Payment protocol
- Ripple, a cryptocurrency company known for its cross-border payment solutions, has acquired Fortress Trust, a startup specializing in crypto infrastructure.
- The acquisition aims to expand Ripple’s offerings beyond blockchain-powered payments and enables the interaction between large corporations and digital currencies.
- Ripple, which uses XRP for cross-border payments, has faced challenges in recent times.
Ripple, the well-known cryptocurrency company celebrated for its cross-border payment solutions, has just made an exciting announcement. They’ve acquired Fortress Trust, a startup specializing in crypto infrastructure. This strategic move is set to open up new horizons for Ripple, extending its offerings beyond its primary focus on blockchain-powered payments.
Fortress Trust, a venture initiated by Scott Purcell in 2021, has a mission to facilitate the interaction between large corporations and digital currencies. Unfortunately, the specific financial terms of this acquisition remain undisclosed by Ripple.
As most of us know, Ripple is renowned for its role as a cross-border payments provider, employing a blockchain-based messaging system reminiscent of SWIFT for rapid transactions between banks and financial institutions. Ripple’s network includes notable partners such as Modulr in the United Kingdom, Nium in Singapore, and SBI Remit in Japan. Furthermore, Ripple employs XRP, a cryptocurrency in which they hold a significant stake, to facilitate cross-border payments.
Despite this significant development, the value of XRP experienced only minimal fluctuations, hovering at around 50 cents with a modest 0.4% increase over the past 24 hours. It’s essential to note that Ripple has encountered its share of challenges in recent times, including a legal battle with the U.S. Securities and Exchange Commission (SEC) concerning XRP’s classification as a security, along with allegations of illegal token sales totaling over $1 billion by Ripple’s executives.
Previously, Ripple had a partnership with MoneyGram, which leveraged XRP for swift transfers. However, this partnership was severed in March 2021 amid the legal dispute. In a significant win for Ripple, a judge ruled in July that XRP was “not necessarily a security on its face.”
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Ripple’s business has been gaining momentum, particularly outside the United States, where the majority of its clients are located. This acquisition of Fortress Trust marks Ripple’s second major move this year, following their acquisition of Swiss crypto custody services provider Metaco for $250 million in May.
Although specific financial details of the Fortress Trust acquisition haven’t been disclosed, Ripple has confirmed that it is smaller in scale compared to the Metaco deal. Additionally, this acquisition has granted Ripple a valuable Nevada trust, which expands its regulatory permits. This development allows Ripple to provide regulated services for both fiat and cryptocurrencies to specific U.S. customers.
Equipped with various licenses, including the coveted New York BitLicense and 30 money transmitter licenses spanning the United States, Ripple is continually exploring new opportunities for expansion and innovation within the cryptocurrency realm.
Ripple’s acquisition of Fortress Trust is poised to strengthen its existing services and enrich the overall customer experience within its payment and liquidity solutions. This acquisition underscores Ripple’s ongoing commitment to diversifying its customer base and addressing a broader spectrum of customer needs and use cases. It also positions Ripple as a significant player in the crypto custody sector, solidifying its presence in the ever-evolving world of cryptocurrencies.
