Crypto-based payments platform Ripple Labs is acquiring blockchain infrastructure firm Fortress Trust, the second major purchase for the company this year.
In a new company blog post, Ripple announces its addition of Web3 firm Fortress Trust to handle its infrastructure and regulatory compliance needs.
“Through its technology and licensing, Fortress Trust provides critical infrastructure to address the growing enterprise crypto market that complements Ripple’s business and product roadmap…
By leveraging a regulated partner like Fortress, financial institutions and enterprises can focus on building their blockchain strategy rather than worrying about compliance requirements.”
Ripple says it plans on further investing in the Fortress brand by putting money into its parent company as a means of bolstering its payments network.
“Following the closure of the Fortress Trust deal, Ripple plans to invest in the parent company, Fortress Blockchain Technologies and its FortressPay services, which will leverage Ripple’s global technology to deliver new and innovative payment solutions to business-to-business customers around the world.”
As stated by Ripple CEO Brad Garlinghouse in the blog post,
“As an early investor in Fortress Blockchain, we’ve had a chance to get to know the team, its vision and technology. Since their launch in 2021, 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.”
Earlier this year, Ripple spent $250,000,000 acquiring institutional digital asset custody firm Metaco in response to research suggesting that financial institutions are planning on heavily incorporating cryptocurrencies into their business models within the next three years.
At the time, Ripple said that Metaco’s services, which include asset tokenization, would help fulfill the needs of its blue-chip clientele.
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