A significant blockchain entity known for its role in cross-border payments is seeking to raise at least $1 billion aimed at acquiring XRP tokens for a digital asset treasury (DAT). This financial move was reported shortly after the company announced its acquisition of a treasury management firm for a valuation of $1 billion. Despite this development, there appears to be no direct link between the XRP treasury initiative and the recent acquisition.
According to reports, this company is planning to raise considerable funds by utilizing a special purpose acquisition company (SPAC) while incorporating its own XRP holdings into the DAT. As of the end of July, the firm possessed approximately 4.74 billion XRP tokens, valued at around $11 billion based on current market rates. Additionally, there are 35.9 billion XRP tokens locked in an “on-ledger escrow,” with a portion released monthly.
Despite these financial maneuvers, there has been no formal announcement confirming the treasury initiative, and ongoing discussions regarding the transaction terms suggest that these details may evolve.
The XRP token is intrinsically linked to this organization, which has been embroiled in a lengthy legal dispute with the U.S. Securities and Exchange Commission over the cryptocurrency’s classification. Currently, XRP ranks as the fifth-largest cryptocurrency, boasting a market capitalization of roughly $137.5 billion. Nevertheless, it has suffered a notable depreciation, trading significantly lower than its prior peak of over $3.50.
The trend of integrating cryptocurrencies into corporate treasuries has gained traction among various companies. For example, one business intelligence firm has invested heavily in Bitcoin for its treasury, joining the ranks of over 300 entities that now own the leading cryptocurrency. While several companies also hold Ethereum, few have invested in XRP, with sustainable-energy company VivoPower International being a notable exception, as it previously announced a substantial fundraising effort to acquire XRP.
Earlier this year, another major investment involved this organization agreeing to purchase a crypto prime brokerage firm for a deal worth $1.25 billion, further illustrating its ambition within the crypto financial landscape.
As interest in cryptocurrencies among corporations continues to rise, the future of XRP’s place in corporate treasuries remains to be seen, particularly with its unique position in the cryptocurrency market and its ongoing legal challenges.