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.
Temitope is a writer with more than four years of experience writing across various niches. He has a special interest in the fintech and blockchain spaces and enjoy writing articles in those areas. He holds bachelor’s and master’s degrees in linguistics. When not writing, he trades forex and plays video games.