Ripple Rescues Fortress Trust Customers in Potential Acquisition Deal

On Sep 11, 2023 at 10:57 am UTC by · 3 mins read

Ripple, an investor in Fortress, has stepped in to compensate Fortress customers for any incurred losses as part of the acquisition process.

Ongoing discussions surround the potential acquisition of Fortress by Ripple, a cryptocurrency payment network. This unexpected development follows security issues faced by Fortress due to the compromise of a third-party vendor’s cloud tools.

While the extent of the crypto loss remains unclear, it raises concerns about the security of clients’ investments. Ripple, an investor in Fortress, has stepped in to compensate Fortress customers for any incurred losses as part of the acquisition process.

Ripple’s spokesperson said:

“Luckily, Ripple was in a position to act quickly to step in and make customers whole, and there have been no breaches to Fortress technology or systems. Fortress notified customers immediately of the incident when it happened – as they mentioned in their tweets”

This entire situation appears to expedite the dialogue between Ripple and Fortress regarding the potential acquisition. Although Fortress announced an acquisition deal on September 8, it still awaits regulatory approvals and due diligence. If approved, the deal will significantly bolster Ripple’s collection of regulatory licenses, as Fortress holds a Nevada License, which is valuable in the cryptocurrency industry.

Ripple’s Fortress Acquisition Deal Strategically Increasing Its Regulatory Reach

Acquiring Fortress, along with its license, could strategically position Ripple to leverage Nevada’s favorable regulatory compliance framework. Successfully obtaining the purchase approval would provide Ripple with a smoother path through the intricate regulatory landscape, reducing potential legal issues and enhancing trust within the crypto industry.

Another advantage of acquiring this license is the potential to attract more investors and users to the blockchain and crypto business, given the enhanced credibility it offers. This acquisition could enable Ripple to expand beyond its current geographical boundaries.

In addition to the Fortress acquisition, Ripple recently acquired Metaco, a Swiss custody startup, for $250 million. Metaco’s acquisition empowered Ripple to custody, issue, and settle various tokenized assets. Before the purchase, Metaco had established credibility in the global financial sector and boasted a global reach. It was renowned for safeguarding digital assets against theft and unauthorized access due to its secure custody infrastructure.

Furthermore, Ripple has also taken a stake in Bitcamp, a cryptocurrency exchange based in Luxembourg. This investment in a well-established and globally reliable cryptocurrency company further enhances Ripple’s credibility in the cryptocurrency and blockchain space.

Investors Anticipate XRP Price Increase

With Ripple’s strategic moves, such as acquiring Fortress, and Metaco, and investing in Bitstamp, coupled with its ongoing legal battle with the SEC, it is evident that many investors are anticipating a positive outlook for the price of XRP. Although the recent announcement of a victory against the SEC had a minor impact on the price, it could be just the beginning of a more significant shift.

Share:

Related Articles

Analyst Predicts 250% XRP Price Rally Amid ETF Hopes

By July 11th, 2025

Analysts see the potential for XRP price to rally over 250% to $9.63, citing strong technical setups and historical accumulation patterns.

Ripple Labs Taps BNY Mellon for RLUSD Reserves Custody

By July 9th, 2025

Ripple Labs has partnered with BNY Mellon to manage RLUSD reserves, aiming for trust and wider adoption as stablecoin interest grows

DOGE and XRP Mining Surge Drives Interest in Cloud Mining Platform HashJ

By July 8th, 2025

Dogecoin and XRP mining are gaining momentum, and cloud platform HashJ is meeting the demand by launching low-cost, accessible mining options for both tokens.

Exit mobile version