The cryptocurrency-based payments platform Ripple Labs is in the process of acquiring the blockchain infrastructure firm Fortress Trust, marking its second significant acquisition this year.
In a recent corporate blog post, Ripple has officially announced the addition of Fortress Trust, a Web3 company, to manage its infrastructure and regulatory compliance requirements.
“Through its technological solutions and licensing, Fortress Trust plays a pivotal role in addressing the burgeoning enterprise crypto market, which aligns seamlessly with Ripple’s business and product roadmap…
By partnering with a regulated entity like Fortress, financial institutions and enterprises can redirect their focus toward developing their blockchain strategies without being burdened by compliance obligations.”
Ripple has outlined its intentions to make additional investments in the Fortress brand by injecting capital into its parent company to strengthen its payments network.
“After the completion of the Fortress Trust acquisition, Ripple intends to provide financial support to the parent company, Fortress Blockchain Technologies, and its FortressPay services. This strategic collaboration will harness Ripple’s global technology to introduce innovative payment solutions to business-to-business customers worldwide.”
As articulated by Ripple’s CEO, Brad Garlinghouse, in the blog post:
“As early investors in Fortress Blockchain, we have had the opportunity to become acquainted with the team, their vision, and their technology. Since their inception in 2021, they have built an impressive business with recurring revenue and a robust clientele consisting of both crypto-native and newcomers to the crypto space.
We are enthusiastic about onboarding this team and their technology to expedite our business growth and maintain our competitive edge in areas crucial to crypto infrastructure.”
Earlier this year, Ripple made a substantial investment of $250,000,000 to acquire the institutional digital asset custody firm Metaco in response to research indicating that financial institutions are planning to incorporate cryptocurrencies extensively into their business models within the next three years.
At that time, Ripple emphasized that Metaco’s services, which include asset tokenization, would effectively meet the requirements of its high-profile clientele.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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