In a surprising twist of events, Ripple has decided to back out of its intended acquisition of Fortress Trust, a chartered trust company based in Nevada.
This decision comes just 20 days after Ripple initially announced its plans to acquire the company.
Ripple’s CEO, Brad Garlinghouse, took to Twitter to share the news. He stated that Ripple had chosen not to proceed with the full acquisition but emphasized that the company would still maintain its investment in Fortress Trust.
Ripple had initially expressed its intention to acquire Fortress Trust and use its payment technology for FortressPay.
The relationship between Ripple and Fortress Trust dates back to 2022, when Ripple made an investment in Fortress Trust through a seed round.
Despite the change in acquisition plans, Garlinghouse expressed his confidence in Fortress Trust’s capabilities and its talented team, emphasizing the value they bring to the industry. He also hinted at the possibility of future collaborations between the two entities.
Ripple’s initial announcement of the acquisition on September 8 garnered attention due to its potential to expand Ripple’s licensing portfolio within the United States.
Fortress Trust held a coveted Nevada Trust license, and its acquisition by Ripple was expected to enhance the regulatory status of the payment company.
Shortly after the acquisition plans were revealed, Fortress Trust experienced a security incident involving a third-party vendor, Retool, which had fallen victim to a phishing attack.
Ripple later disclosed that it would cover the losses incurred by Fortress Trust’s affected customers as part of the deal.
However, internal challenges within Ripple seemed to have played a role in the decision to abandon the acquisition.
Fortress Trust CEO Scott Purcell mentioned that some Ripple employees had raised concerns about the acquisition, which contributed to the change of plans.
Judith Faith has been writing about cryptocurrencies and blockchain technology for over five years. She is well versed in the industry and has an extensive network of industry contacts. She is also a frequent contributor to various cryptocurrency publications. With her vast knowledge and experience, she is able to provide insightful and valuable content to her readers. Judith is also an active investor in the cryptocurrency space and has a vested interest in the success of the industry.
Related posts
