According to the latest news, Ripple acquired the crypto-focused chartered trust company Fortress Trust. The price tag is less than the $250 million it paid for custody firm Metaco in May, sources said.
Ripple acquired Fortress Trust in a new move
Blockchain firm Ripple said in a statement on Friday that it has acquired Fortress Trust, a Nevada-based chartered trust company focused on crypto and Web3. There is no clear information yet regarding the financial terms for the acquisition. Ripple did not provide further details on the issue. But a person with knowledge of the matter said the price tag was less than the $250 million it paid for custody firm Metaco in May.
The acquisition adds Nevada to Ripple’s list of regulatory licenses, which includes the New York BitLicense and money transmitter licenses in 30 US states. Fortress Trust, which provides a financial and regulatory structure for blockchain companies, was founded by Scott Purcell, former CEO of crypto custodian Prime Trust, and was placed into receivership in July after fellow custodian BitGo ended its proposal to acquire the firm.
Purpose of purchasing is to be a one-stop shop!
Ripple’s president, Monica Long, described the acquisition as supporting the firm’s goal of “becoming a one-stop shop for businesses looking to transform, store and move value on the blockchain.” Meanwhile, Ripple became a minority investor in Fortress Trust’s parent company, Fortress Blockchain Technologies, in August 2022 as part of the Web3 infrastructure provider’s seed round.
Ripple supporters review LBRY notice of objection
Peer-to-peer content delivery network LBRY Inc. He filed an appeal against the U.S. District Court’s decision. The court ruled that LBRY’s token, LBRY Credits (LBC), was an unregistered security. So he sided with the SEC. Federal Judge Paul Barbadoro rejected LBRY’s argument that the LBC token had a utility and was not merely an investment, stating that “objective economic facts” showed it was a security. LBRY responded with resistance to the decision. In this regard, he made a statement as follows: “We will lick our wounds a little, but we are not giving up.”
The latest development is being closely watched by supporters of Ripple, another blockchain company that has been embroiled in a similar legal battle with the SEC. The SEC’s victory against LBRY in July was seen as a significant setback for Ripple and the crypto world. Because both companies were sued by the SEC for allegedly selling unregistered securities. Ripple faced a lawsuit just months before LBRY. Interestingly, the court did not consider secondary sales of the XRP token to be securities. As you follow from Kriptokoin.com, Ripple thus managed to achieve a partial victory against the SEC. This nuanced conclusion is likely to have influenced LBRY’s decision to appeal.
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