Ripple said it won't go forward with its outright acquisition of Nevada-based chartered trust company Fortress Trust.
"A few weeks ago, we signed a letter of intent to acquire Fortress Trust – we’ve since made the decision not to move forward with an outright acquisition, though Ripple will remain an investor," Ripple's CEO Brad Garlinghouse said on social media platform X (formerly Twitter).
Ripple said on Sept. 8 that it intended to buy Fortress for an undisclosed amount. At the time, a person with knowledge of the matter said the price tag was less than the $250 million Ripple paid for custody firm Metaco
Fortress Trust, which provides financial and regulatory structure for blockchain companies, was formed by Scott Purcell, who has a long history in the industry. He was CEO of crypto custodian Prime Trust until 2020. Years after he left Prime Trust, the company was ordered into receivership after fellow custodian BITGO terminated its proposed acquisition of the firm.
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"The Fortress team is incredibly talented, and has built products solving real customer problems. While this outcome is different from what was originally planned, we’ll continue to support them and hope to work together in the future," Garlinghouse added.
Edited by Stephen Alpher.
