After signing a letter of intent, Ripple CEO Brad Garlinghouse has announced that the company would not be acquiring Fortress Trust.
Garlinghouse reassured everyone that despite the shift in focus, Ripple would still be a long-term investment in Fortress.
According to CEO Brad Garlinghouse, Ripple has opted against an outright takeover of Fortress Trust. On X (formerly Twitter), Garlinghouse said, “We have decided not to move forward with an outright acquisition of Fortress Trust; however, Ripple will remain an investor in Fortress.” This came after the company had signed a letter of intent to buy Fortress Trust a few weeks earlier.
Garlinghouse also said, “The Fortress team is very skilled and has made products that solve real customer problems.” Despite the change in plans, we continue committed to them and look forward to future collaboration.
Ripple spent $250 million for a Swiss business that specializes in custody services called Metaco only a few months before it announced its intention to purchase Fortress Trust on September 8. Fortress Trust planned to leverage Ripple’s payments technology for its FortressPay service.
Ripple subsequently acknowledged that as part of the agreement, it will compensate blockchain infrastructure startup’s clients for financial damages incurred as a result of a security breach attributable to a third party.