- Ripple is planning to raise at least $1 billion to increase its XRP holdings.
- The fundraising will use a special purpose acquisition company, with some XRP coming from Ripple’s existing reserves.
- Funds raised will be managed in a digital asset treasury (DAT) as Ripple expands into the corporate treasury sector.
- The move follows Ripple’s recent $1 billion acquisition of GTreasury.
- U.S. regulators are monitoring companies shifting to digital asset treasuries, while XRP’s price has fallen significantly in the past week.
Ripple is seeking to raise a minimum of $1 billion to bolster its holdings of its native cryptocurrency, XRP. The company intends to complete this fundraising through a special purpose acquisition company, contributing part of its current XRP reserves as part of the initiative.
According to a Bloomberg report, the funds will be kept in a new digital asset treasury (DAT). The structure and specific terms of the deal are still being discussed and may change.
This development comes immediately after Ripple finalized its $1 billion acquisition of GTreasury, a move designed to help the company expand in the multi-trillion-dollar corporate treasury market. As more firms turn to DATs in response to a more crypto-friendly stance from the Trump administration, Ripple aims to strengthen its presence in this sector.
Regulatory scrutiny remains high, however. The U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (Finra) are reportedly examining companies that have experienced major share price swings after moving toward digital asset treasury strategies, according to the Wall Street Journal.
Within the past day, XRP’s price dropped 1.9%, trading near $2.31, and sentiment among retail traders has moderated to neutral. Ripple’s stablecoin, RLUSD, is seeing bearish sentiment among retail investors. Over the past week, XRP fell more than 17%, remaining over 37% below its July all-time high of $3.65. According to traders, continued market uncertainty is tied to trade tensions between the U.S. and China, as well as concerns over the regional banking sector.
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