Cryptocurrency company Ripple has announced its acquisition of Fortress Trust, a startup specializing in crypto infrastructure. While the terms of the deal were not disclosed, this acquisition grants Ripple a license in Nevada and extends its reach beyond its core focus on blockchain-enabled payments. Fortress Trust, founded in 2021 by Scott Purcell, aims to facilitate large enterprises’ interactions with digital currencies. Ripple, primarily known for its role in cross-border payments, employs a blockchain-based messaging system akin to SWIFT, enabling rapid transactions between a network of banks and financial institutions. It also utilizes XRP, a cryptocurrency closely associated with the company, for cross-border bank payments. Despite the acquisition news, XRP’s token price saw minimal movement, experiencing a modest 0.4% increase in the past 24 hours, trading at 50 cents.

Ripple has faced challenges in recent years, notably a lawsuit from the U.S. Securities and Exchange Commission alleging that XRP should be considered a security. However, in July, a judge ruled that the XRP token was “not necessarily a security on its face,” marking a significant legal victory for Ripple. This acquisition marks Ripple’s second in 2023, following its purchase of Swiss crypto custody provider Metaco for $250 million in May. With the acquisition of Fortress Trust, Ripple aims to enhance customer experiences within its payments and liquidity solutions while expanding its regulatory permits globally. Ripple already holds various licenses, including a New York BitLicense and a Major Payment Institution License from the Monetary Authority of Singapore. The acquisition aligns with Ripple’s broader goal of expanding its services and customer base, potentially serving a broader range of use cases and customers in the future. Ripple’s move into the “crypto custody” space, which focuses on secure token storage for companies and users, aligns with the company’s ongoing growth initiatives.