In a strategic step to strengthen its operations in blockchain and crypto payments solutions, Ripple has announced its acquisition of Fortress Trust, a subsidiary of Fortress Blockchain Technologies. The partnership targets enterprises in the blockchain, conversion, storage, and value transfer sectors.
Fortress Trust is a licensed Web 3 financial institution specializing in regulatory compliance and technology infrastructure for blockchain companies. Its acquisition follows Ripple's recent deal to acquire Metaco, a crypto custody provider, for USD $250 million.
Ripple Expands Operations
Brad Garlinghouse, the CEO of Ripple, said: "As an early investor in Fortress Blockchain Technologies, we have had a chance to get to know the team, its vision, and technology. Since their launch in 2021, they have built an impressive business with recurring revenue and a strong roster of both crypto-native and new-to-crypto customers."
With the acquisition of Fortress Trust, Ripple's portfolio of regulatory licenses has increased. Fortress Trust holds a Trust license in Nevada, which adds to Ripple's existing licenses, including a BitLicense in New York and over 30 Money Transmitter licenses across the US. Ripple expects that these licenses will position it as a reliable brand among enterprises amid a legal tussle with the SEC.
Last month, Judge Analisa Torres granted the SEC a request to proceed with an appeal against a recent court ruling, which declared that Ripple's sale of XRP cryptocurrency on digital asset exchange did not violate securities regulations. This decision sets the stage for the SEC to present its case for an interlocutory appeal.
The SEC argued that its pursuit of an interlocutory review is warranted because the issues at hand involve substantial legal questions with differing opinions. According to the regulator, Ripple's case has the potential to impact other pending cases.
Ripple's Legal Battle with SEC
As reported by Finance Magnates, Stuart Alderoty, Ripple's Chief Legal Officer, has contested the SEC's basis for pursuing an interlocutory appeal. He believes that there are no extraordinary circumstances justifying an appeal before the issues involving all the parties have been resolved.
A separate opinion issued by Judge Jed Rakoff in the same federal court contradicted the XRP ruling. Judge Rakoff's opinion asserted that cryptocurrencies should be considered securities regardless of the context in which they are sold.
Ripple, best known for its blockchain-based solutions, aims to address the challenges in cross-border payments using blockchain and cryptocurrency technology. Over the years, Ripple has expanded its product suite to tackle new use cases, such as liquidity management, tokenization, and Central Bank Digital Currencies (CBDCs).
