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Ripple adds Nevada to its regulatory licenses, acquires web3 infrastructure provider Fortress Trust

  • Ripple announced it would be acquiring Fortress Trust, a company it has been a minor investor in since 2022.
  • The payment processor aims to become a one-stop shop for enterprises looking for blockchain solutions with this acquisition.
  • XRP is failing to gain traction in the market, losing nearly the entirety of its July rally.

Ripple has a dominant presence in the market when it comes to crypto payment processors. The platform is already establishing users in multiple parts of the world and continues to expand unbothered by the conditions of the market. 

Ripple reaches Nevada

Ripple on Friday announced that it was moving forward with the decision to acquire Fortress Trust, a licensed Web3 financial, regulatory and technology infrastructure provider for blockchain innovators.

As stated by the payment processor, Fortress Trust’s presence in the enterprise crypto market serves as the primary motivation for Ripple’s acquisition. By bringing the infrastructure provider firm under its wing, Ripple would be taking another step towards its goal of becoming a one-stop shop for enterprises looking for blockchain solutions. 

Furthermore, the acquisition also adds another regulatory license to Ripple’s portfolio. The payment processor already has over 30 Money Transmitter License across the United States, and with Fortress Trust’s takeover, the list would now also include the Nevada Trust license.

Ripple has been long aiming to expand its presence in the enterprise crypto market, verified by the fact that it was a minority investor in Fortress Trust in 2022. Participating in its seed round, the firm has been looking to strengthen its footing, regardless of the crypto market condition.

XRP price recovery is a matter of concern

XRP price has been moving sideways for the past eight days with no signs of a recovery in sight. The altcoin brought substantial profits to investors around mid-July when it charted a 74% rally but has only been declining since then. At the time of writing, the altcoin could be seen down by over 38%, trading at $0.504.

XRP/USD 1-day chart

XRP/USD 1-day chart

Despite the positive developments in the case of Ripple, the altcoin has been failing to draw investors. The reason behind this is most likely the broader market bearish conditions, which have kept investors from acquiring XRP despite nearly two-month low prices.

This is also reflected in the Market Value to Realized Value (MVRV) ratio. The metric is used to analyze the average profit/loss experienced by the investors over the past month, as it uses a 30-day timeframe. The indicator marking sitting at -3.52 % suggests that short-term investors are still experiencing losses in the market.

The metric also points out the buy zones for investors, which historically have proved to be the point beyond which price tends to recover. These areas are labeled as opportunity zone, and in the past, XRP price has bounced back as once losses reach this point, investors shows restraint in selling and instead switch to accumulation.

However, this time around, owing to uncertain market conditions, the price failed to bounce back despite the MVRV ratio hitting -24% around mid-August. 

XRP MVRV ratio

XRP MVRV ratio

Thus, XRP holders’ lack of profits could be countered only when the rest of the market also changes its stance from bearish to bullish. Until then, $0.500 would be the level to watch as a critical support line for XRP, slipping below which would be concerning for investors.


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Author

Aaryamann Shrivastava

Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.

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