A prominent player in the blockchain-based cross-border payments sector is reportedly seeking to raise at least $1 billion for the acquisition of XRP tokens to establish a digital asset treasury (DAT). In parallel, the organization recently announced its acquisition of a treasury management firm for a comparable amount, although there appears to be no direct link between this acquisition and the plans for the XRP treasury.
According to reports, the entity intends to raise significant funds through a special purpose acquisition company (SPAC) and contribute a portion of its own holdings of XRP to the DAT. As of the end of July, the organization controlled approximately 4.74 billion XRP tokens in its digital wallets, valued at around $11 billion based on current market rates. Additionally, it has 35.9 billion XRP secured within an escrow account, releasing a portion on a monthly basis.
Despite the plans being discussed, there has yet to be formal confirmation regarding the transaction, and terms may still undergo revisions.
The XRP token enjoys a close association with the organization, which has been involved in a lengthy legal dispute with the U.S. Securities and Exchange Commission concerning the token’s regulatory status. Currently, XRP ranks as the fifth-largest cryptocurrency by market capitalization, estimated at around $137.5 billion. However, it recently experienced a significant decline in value, dropping well below its peak of over $3.50.
In the context of corporate treasury asset strategies, incorporating cryptocurrencies has gained traction. Notably, several companies are taking the initiative to hold Bitcoin, with over 300 entities reported to be among its holders. However, the same trend has not yet taken off for XRP, although there are exceptions, such as a sustainable-energy firm announcing an initiative to raise funds specifically to acquire XRP.
Earlier in the year, the organization also announced a substantial acquisition of a crypto prime broker, marking its continual expansion into diverse aspects of the cryptocurrency ecosystem.