Ripple buys crypto infrastructure startup in its second acquisition of 2023

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Cryptocurrency company Ripple on Friday it will acquire Fortress Trust, a startup specializing in crypto infrastructure.

XRP didn't move substantially on the news. The token was up about 0.4% in the past 24 hours, trading at a price of 50 cents.in recent years, with the U.S. Securities and Exchange Commission targeting the firm with a lawsuit alleging XRP should be considered a security and that its executives sold over $1 billion worth of the token to investors in an illegal securities offering.

Ripple has seen momentum in its business build recently — particularly outside the U.S., where most of its clients are based. Asked whether the ruling meant that American banks would return to Ripple to use its ODL product, Stu Alderoty, Ripple's chief legal officer,Fortress is Ripple's second acquisition this year. In May, the companyA Ripple spokesperson declined to comment on the size of the deal but said that it is less than the sum Ripple paid to buy Metaco.

Ripple also obtained a Nevada trust with its acquisition of Fortress Trust, adding to its growing list of regulatory permits globally. A company spokesperson said this would enable the firm to"provide regulated services — for both fiat and crypto — to certain customers in the U.S." "Longer term, we anticipate there will be ways we can leverage the technology to support new initiatives on our roadmap and enable Ripple to serve a broader segment of customers and use cases," a Ripple spokesperson told CNBC via email.

 

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