XRP News: Ripple’s Nevada Trust License Pursuit Through Fortress Acquisition

The post XRP News: Ripple’s Nevada Trust License Pursuit Through Fortress Acquisition appeared first on Coinpedia Fintech News

In a business landscape often characterized by profit-over-principle, Ripple not only acquired blockchain startup Fortress Trust but also took on the financial burden of a recent security incident affecting Fortress’s customer base. This move has redefined the playbook for corporate social responsibility in the crypto realm.

The Ethical Acquisition Move of Ripple

Days before the announcement, Fortress Trust revealed that its customers had been affected by a third-party vendor security compromise. Where most companies might see a chance to lower an acquisition bid, Ripple, already a minority stakeholder in Fortress, saw an opportunity for goodwill. Accelerating the acquisition process, the fintech giant also pledged to compensate affected customers.

The decision to cover Fortress customers’ losses was not just tactical but ethical. This creates a new narrative in how acquisitions, particularly in the crypto world, can be human-centric.

XRP Price Dip

While Ripple’s extraordinary move has captured industry-wide admiration, its cryptocurrency, XRP, experienced a puzzling price slump. Bill Morgan, an Australian lawyer, questioned if Ripple had sold XRP to finance this charitable gesture: “The question looms whether Ripple unloaded a considerable chunk of XRP, contributing to the price’s dip.”

Though the XRP price drop has raised eyebrows, it needs to be noted that short-term price moves mean nothing in the grand scheme of things. 

Strengthening the Regulatory Fortress

Pending due diligence and regulatory nods, the acquisition would add a feather to Ripple’s cap in the form of a Nevada Trust License, currently held by Fortress Trust—a subsidiary of Fortress Blockchain Technologies.

Besides the financial ramifications, this deal could also serve as a crucial stepping stone in Ripple’s regulatory journey

Revising Corporate Responsibility Narratives in Crypto

John Deaton, founder of CryptolawUS, lauded Ripple’s ethical stance and resilience, pointing out that Ripple had emerged unweathered from a 30-month-long SEC investigation without a single charge of fraud or misrepresentation.

This shows a maturation in the crypto industry. A company as big as Ripple taking responsibility beyond contractual obligations is a strong sign for things to come.

This acquisition follows Ripple’s $250 million purchase of Swiss custody startup Metaco earlier this year, marking a substantial appetite for strategic investments. But what sets the Fortress deal apart is its blend of corporate philanthropy and strategic business alignment.

The message is clear: Even in the ever-changing crypto landscape, a bit of old-fashioned goodwill can go a long way.