XRP at Core of Ripple’s Massive $1B Treasury Plan for Institutional Expansion: Report

CN
6 hours ago

XRP and Ripple Labs Inc. are drawing renewed attention as established crypto firms push ahead with major initiatives despite recent market stress. Bloomberg reported on Oct. 17 that Ripple is leading an effort to raise at least $1 billion to create a digital-asset treasury (DAT) focused on accumulating XRP.

The capital is expected to be raised through a special purpose acquisition company (SPAC), with Ripple contributing a portion of its own XRP holdings, according to people familiar with the discussions.

The move comes as the crypto sector remains fragile following a steep selloff linked to intensifying U.S.-China trade tensions that triggered record liquidations. Bitcoin’s recent slide has added to concerns over market weakness while investors have grown more cautious toward digital asset treasury strategy as the shares of major crypto-accumulating firms such as Michael Saylor’s Strategy Inc. and Japan’s Metaplanet Inc. have fallen sharply in recent months.

Meanwhile, Ripple’s recent partnerships focus on major institutional adoption across treasury management, custody, and tokenization. Key recent news includes the $1 billion acquisition of GTreasury, a global leader in treasury management systems, giving Ripple immediate access to the corporate finance market.

Furthermore, Ripple recently announced a strategic partnership with Absa Bank in South Africa to launch the continent’s first institutional-grade digital asset custody platform, securing cryptocurrencies and tokenized assets for Absa’s clients. These moves, along with a multi-party collaboration with DBS Bank and Franklin Templeton in Asia to explore tokenized trading on the XRPL, show a clear strategy to evolve beyond payments and become a comprehensive provider of institutional digital asset infrastructure globally. Despite the volatility, Ripple appears set on pursuing its long-term strategy. If finalized, the $1 billion DAT would be the largest treasury vehicle centered on XRP.

  • What is Ripple’s new $1 billion Digital Asset Treasury (DAT) initiative?
    Ripple is reportedly leading an effort to raise at least $1 billion through a SPAC to establish a Digital Asset Treasury focused on accumulating and managing XRP as a strategic institutional reserve.
  • How does Ripple plan to fund the DAT?
    The DAT will be funded through external capital raised via the SPAC, combined with a portion of Ripple’s existing XRP holdings, signaling strong internal commitment to the project.
  • What recent acquisitions and partnerships strengthen Ripple’s institutional focus?
    Ripple’s $1 billion acquisition of GTreasury and its partnerships with Absa Bank, DBS Bank, and Franklin Templeton enhance its reach in treasury management, custody, and tokenization services across global financial markets.
  • Why is Ripple’s strategy significant for investors amid market volatility?
    Despite crypto market weakness, Ripple’s expansion into institutional digital asset infrastructure and the creation of the XRP-focused DAT position it as a long-term leader in corporate and blockchain finance innovation.

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