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
closely on Ripple’s recent deal to acquire Metaco, a crypto custody provider,
for USD $250 million.
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 argues 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, Stauart 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).
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
closely on Ripple’s recent deal to acquire Metaco, a crypto custody provider,
for USD $250 million.
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 argues 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, Stauart 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).
