Ripple Labs has recently provided additional information regarding its acquisition of blockchain infrastructure company, Fortress Trust. Discussions about the acquisition reportedly intensified after Fortress’s customers experienced a security incident involving a third-party vendor, which resulted in the loss of funds. A spokesperson for Ripple explained that while the incident accelerated the talks, the acquisition had been under consideration even before the incident occurred.
Fortress had previously issued a statement confirming that their customers were affected by a compromised third-party vendor. However, they reassured that there was no loss of funds. Ripple stepped in to cover the losses suffered by Fortress’s customers, which likely led to the progression of the acquisition deal. The exact amount of cryptocurrency lost during the security incident remains undisclosed, and both companies declined to comment on specific wallets or affected customers.
After the security incident, Fortress took immediate action by terminating the vendor integration and pausing all accounts to ensure system-wide security. On September 8, Ripple Labs announced the acquisition deal, highlighting the potential synergies between the two companies. The acquisition was financed through a combination of cash and equity, although the valuation remains undisclosed.
This acquisition will strengthen Ripple’s portfolio of regulatory licenses, as Fortress Trust, a subsidiary of Fortress Blockchain Technologies, holds a Nevada Trust License. Ripple intends to continue investing in Fortress and its FortressPay services, incorporating Ripple’s advanced payments technology.
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Brad Garlinghouse, CEO of Ripple, expressed his excitement about the acquisition, emphasizing the opportunity to accelerate their business and maintain their advantage in critical areas of crypto infrastructure. Scott Purcell, CEO of Fortress Blockchain Technologies, also expressed his enthusiasm, stating that he is pleased that Fortress Trust will be acquired by one of the largest and most innovative companies in the industry.
The acquisition of Fortress Trust is part of Ripple’s ongoing acquisition spree. Earlier this year, Ripple acquired Swiss custody startup Metaco for $250 million and secured a stake in the European crypto exchange Bitstamp. However, it is important to note that the Fortress deal is still subject to due diligence and regulatory approvals.
At the time of writing, XRP, Ripple’s native cryptocurrency, was trading at $0.4819. The chart displayed below illustrates the recent performance of XRP.
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In conclusion, Ripple Labs has revealed further details about its acquisition of Fortress Trust, highlighting the accelerated discussions following a security incident involving a third-party vendor and the subsequent loss of customer funds. The acquisition deal aims to strengthen Ripple’s regulatory licenses and expand its advanced payments technology. The company’s CEO and the CEO of Fortress Blockchain Technologies expressed their enthusiasm for the acquisition, emphasizing the potential benefits for both companies.
