Crypto firm Ripple, known for its ongoing legal battle with the Securities and Exchange Commission (SEC), announced on Friday the acquisition of Fortress Trust, a subsidiary of Fortress Blockchain Technologies. The Nevada-based crypto company bolsters Ripple's pool of regulatory permits, which now includes a Nevada trust license, 30 state money-transmitter licenses, and a New York BitLicense.
The financial terms of the acquisition were not disclosed, but Ripple confirmed the deal involved a mix of cash and equity. An insider source hinted that the price tag was less than the $250 million Ripple paid for crypto custodian Metaco in May, one of the most significant acquisitions in the crypto industry this year.
Brad Garlinghouse, CEO of Ripple, expressed his excitement over the acquisition. "As an early investor in Fortress Blockchain Technologies, we’ve had a chance to get to know the team, its vision and technology,” he said. “We’re excited to bring on this team and its technology to accelerate our business.”
Monica Long, president at Ripple, emphasized the strategic importance of regulatory licenses. "Licenses are a powerful enabler to build and deliver best-in-class customer experiences,” she said. She further described the acquisition as part of Ripple's ambition of "becoming the one-stop shop for enterprises looking to convert, store and move value on blockchain.”
Ripple gained significant attention in 2020 when the SEC sued the company and two executives for alleged unregistered securities offerings related to XRP sales. Ripple countered by arguing that XRP was a commodity similar to gold or silver rather than a security. The case became emblematic of the crypto industry's broader conflict with regulatory bodies like the SEC.
In July, a federal judge partially ruled in Ripple's favor, seen by many as a victory for the crypto industry. However, despite an initial surge, XRP's price has since lost most of its gains.
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