Ripple to Acquire Crypto Custodian Fortress Trust

Ripple, the blockchain-based payments platform, is set to acquire the cryptocurrency custodian Fortress Trust. This acquisition will further enhance Ripple’s ability to safely store and manage digital assets for its clients. The move comes as Ripple continues to expand its suite of financial services and solidify its position as a leader in the crypto industry. With Fortress Trust’s expertise in secure storage solutions, Ripple aims to provide a robust custodial service that meets the stringent security requirements of institutional investors and large corporations. This acquisition marks an important milestone for Ripple as it seeks to provide comprehensive and reliable crypto custody services to its growing client base.

**Title 1: Ripple Acquires Fortress Trust to Strengthen its Web3 Financial Infrastructure**

Ripple, a leading enterprise crypto company, recently announced its intention to acquire Nevada-based Fortress Trust, a Web3-focused financial, regulatory, and technology infrastructure provider. This strategic acquisition aims to enhance Ripple’s business and solidify its advantage in critical areas of crypto infrastructure.

Fortress Trust has established itself as a formidable player in the industry, boasting a diverse customer base consisting of both crypto-native and new-to-crypto clients. Ripple’s CEO, Brad Garlinghouse, expressed excitement about bringing onboard the Fortress Trust team and their technology, recognizing the value they can bring to accelerate Ripple’s growth.

This acquisition is not the first time Ripple has partnered with Fortress Trust. Ripple had previously invested in Fortress Trust as a minority shareholder during its seed round in August 2022. Furthermore, Ripple recently completed a $250 million acquisition of Swiss tokenization firm Metaco, further expanding its portfolio in the crypto custodian space.

Ripple’s strategic move to acquire Fortress Trust also means acquiring its regulatory licenses, including the Nevada Trust license. These licenses are seen as a powerful enabler for delivering a robust and reliable customer experience. Ripple’s President, Monica Long, emphasized the importance of regulatory licenses in improving existing products and exploring new opportunities that enhance customer satisfaction.

**Title 2: Fortress Trust’s Journey from Prime Trust to Ripple’s Acquisition**

Fortress Trust, founded two years ago by Scott Purcell, made headlines for its financial and regulatory infrastructure that complemented Ripple’s solutions for finance. However, before its partnership with Ripple, Fortress Trust had witnessed a significant turning point in its short history.

Previously, Scott Purcell served as the head of Prime Trust, a Nevada-based financial institution. However, Prime Trust faced financial troubles and was deemed insolvent by Nevada regulators. This led to the company filing for bankruptcy in August. In December 2021, Prime Trust lost access to some of its crypto wallets and was unable to meet customers’ Bitcoin withdrawals, leaving many of its clients, including Swan, Coinbits, and Strike, in a challenging position.

Swan, one of Prime Trust’s clients, sought refuge with Fortress Trust, attracted by its legally segregated and bankruptcy remote individual trust accounts. Swan’s CEO, Cory Klippsten, had been critical of Ripple in the past. With Ripple’s acquisition of Fortress Trust, speculations arise regarding any potential shifts of clients’ assets between the companies.

Cory Klippsten mentioned that Swan’s actions post-acquisition would remain unchanged in the near term. However, he hinted at upcoming news in the mid-term, implying potential developments resulting from this acquisition.

In conclusion, Ripple’s acquisition of Fortress Trust strengthens its position in the Web3 financial infrastructure sector. This strategic move allows Ripple to leverage Fortress Trust’s expertise and technology, enhancing its product offerings and expanding its customer base. The incorporation of Fortress Trust’s regulatory licenses further solidifies Ripple’s commitment to providing a seamless and secure customer experience.

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