US-based enterprise blockchain and crypto solutions provider Ripple has agreed to acquire Fortress Trust, a subsidiary of Fortress Blockchain Technologies, for an undisclosed sum.
Fortress Trust is a financial institution engaged in providing licensed Web3 financial, regulatory and technology infrastructure for companies building blockchain-based services.
It offers back-end infrastructure for payments, asset tokenization, regulated custody, compliance, and other services to support B2B clients.
The agreement follows Ripple’s recent acquisition of crypto custody provider Metaco for $250m.
Upon closing, Ripple intends to invest in Fortress Blockchain Technologies and FortressPay, which will provide advanced payment solutions to B2B customers worldwide.
Ripple CEO Brad Garlinghouse said: “As an early investor in Fortress Blockchain Technologies, 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.”
Last year, Ripple participated in Fortress Blockchain Technologies’ seed funding round and became a minority investor in the company.
The blockchain and crypto solutions provider said that the proposed acquisition will expand its growing portfolio of regulatory licenses.
Fortress Trust holds a Nevada Trust license, while Ripple and its affiliates hold a NY BitLicense, and more than 30 Money Transmitter Licenses across the US.
In addition, the crypto solutions company also holds an in-principle Major Payment Institution License from the Monetary Authority of Singapore.
Fortress Blockchain Technologies CEO Scott Purcell said: “We’re extremely pleased that Fortress Trust will be acquired by Ripple, one of the largest and most innovative companies in the industry – it’s a testament to the team and business that we’ve built in a short period of time.
Ripple president Monica Long said: “Licenses are a powerful enabler to build and deliver best-in-class customer experiences for enterprises using Ripple’s crypto infrastructure across our payments and liquidity solutions.
“Acquiring Fortress Trust affords us a lot of optionality to both improve the current customer experience in our existing products and explore new, complementary products – all in service of becoming the one-stop shop for enterprises looking to convert, store, and move value on blockchain around the world.”