Brad Garlinghouse, the CEO of Ripple, wrote in a recent X (formerly Twitter) post that “they will not move forward with Fortress Trust.” In his post, he noted, “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.” However, the U.S.-based crypto firm, Ripple, will remain an investor in Fortress Trust, Garlinghouse further said.
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 in @Fortress_io.
— Brad Garlinghouse (@bgarlinghouse) September 28, 2023
In continuation, Garlinghouse noted, “The Fortress team is incredibly talented, and has built products solving real customer problems.” Ripple’s CEO further clarified that the outcome is different from what they originally planned. Although, he said, “we’ll continue to support them and hope to work together in the future!”
It must be noted that on September 8, 2023, the crypto firm announced the acquisition. This was supposed to be Ripple’s second acquisition in 2023 after Metaco, a cryptocurrency custody company.
Ripple (XRP) Price Performance
After the following announcement by Ripple CEO, the price of XRP has shown bullish movement. Whereas, the surge in XRP price is also supported by the overall bullishness in the global crypto market cap.
According to CoinMarketCap (CMC), In the last 24 hours, total crypto market volume has risen over 4%, reaching $30.25 Billion. Also, with more than 2% price rise over the last day, the global crypto crypto market cap reached $1.07 Trillion.
As per CMC analysis, at press time, XRP is trading at $0.508610 with a 24-hour trading volume of $746.94 Million. XRP is up 2.33% in the last 24 hours, with a current market cap of $27.11 Billion. In the last 24 hours, XRP marked its low at $0.4956 while its high was at $0.5123. However, in the previous 7 days, the XRP token has shown a downside trend with a near decline of 0.30%.
Fortress CEO’s Saying
As per a media outlet report, Fortress CEO, Scott Purcell, said the merger’s cancellation “is not a big deal.” As he said, the change in plans is not related to the security incident. “They are an investor in Fortress and a great partner. Nothing changes there,” he stated.
As the crypto firm continues its high-profile legal battle with the United States Securities and Exchange Commission (SEC), the deal failure could benefit other companies linked to Fortress. As, Swan Bitcoin is working on a joint venture with BitGo to create a Bitcoin-only trust company in the U.S., which is pending regulatory approval.
Notably, Fortress Trust “provides custody of records for Swan.” Although, as the deal collapsed, Swan will no longer be involved in Ripple’s business in the country.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/09/29/ripple-gave-up-its-plan-to-acquire-fortress-trust-confirms-ceo/