In a strategic move aimed at strengthening its position in the cryptocurrency infrastructure sector, Ripple has announced its intention to acquire Fortress Trust, a Nevada-based financial, regulatory, and technology infrastructure provider with a particular focus on Web3 technologies. This significant acquisition comes on the heels of Ripple’s earlier investment in Fortress Trust during its seed round in August 2022.
Fortress Trust, founded just two years ago by Scott Purcell, the former CEO of Prime Trust, has emerged as a notable player in the crypto-custodial arena, boasting a robust clientele encompassing both crypto-native entities and those new to the cryptocurrency landscape.
Brad Garlinghouse, CEO of Ripple, expressed enthusiasm about the acquisition, stating, “They’ve built an impressive business with recurring revenue and a strong roster of both crypto-native and new-to-crypto customers. We’re excited to bring on this team and its technology to accelerate our business and continue pressing our advantage in the areas critical to crypto infrastructure.”
This acquisition aligns with Ripple’s broader strategic vision to expand its crypto infrastructure capabilities. Ripple has been making strategic moves to diversify its portfolio, recently completing a $250 million acquisition of Swiss tokenization firm Metaco, another key player in the crypto custodian space.
Notably, this acquisition grants Ripple access to Fortress Trust’s Nevada Trust license, further enhancing its regulatory licenses. Monica Long, President of Ripple, highlighted the importance of licenses in delivering a strong customer experience, emphasizing that they provide ample flexibility for enhancing existing products and exploring new complementary offerings.
The development raises questions about the potential impact on Fortress Trust’s existing clients, especially given the tumultuous history of Prime Trust, which was previously led by Scott Purcell. Many clients, including retail-oriented Bitcoin financial services companies, had sought refuge with Fortress Trust following Prime Trust’s insolvency.
Cory Klippsten, CEO of Swan, a client of Fortress Trust, clarified that in the near term, there will be no changes in Swan’s operations post-acquisition, with Fortress Trust continuing to function as an autonomous unit. However, the mid-term holds the promise of exciting developments as the integration of Fortress Trust into Ripple’s ecosystem takes shape, potentially leading to new synergies and opportunities within the crypto infrastructure space.
