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Ripple Labs, a big name in cross-border payments using blockchain, is raising at least $1 billion to procure XRP tokens to hold in a digital asset treasury (DAT), Bloomberg reported.
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Ripple’s Big Bet on XRP Treasury
This came hours after the blockchain giant announced its decision to acquire the treasury management firm GTreasury in a deal valued at $1 billion. However, there is no visible connection between the prospective XRP treasury and GTreasury’s acquisition.
The report further outlined that the San Francisco-headquartered company will raise substantial funds through a special purpose acquisition company (SPAC) and contribute its own XRP to the DAT.
Ripple held 4.74 billion XRP tokens in its crypto wallets at the end of July, which were worth about $11 billion at current market prices. The company has another 35.9 billion XRP locked up inside its “on-ledger escrow” and releases a certain portion of them monthly.
However, there is no official confirmation of the move yet, and the exact terms of the transaction are reportedly still under discussion and could change.
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Is XRP Becoming Mainstream Again?
The XRP token is closely linked to Ripple. The company even fought a lengthy court battle against the US Securities and Exchange Commission over the status of the cryptocurrency.
According to CoinMarketCap, XRP is the fifth-largest cryptocurrency, with a market cap of about $137.5 billion as of press time. The token recently lost a significant portion of its value in the recent market downturn and is trading much lower than its peak above $3.50 apiece.
Adding cryptocurrencies to corporate treasuries has become a trend. Although Strategy’s Michael Saylor hoarded billions of dollars’ worth of Bitcoin for his business intelligence company’s treasury, more than 300 entities now hold the top cryptocurrency, according to BitcoinTreasuries.net.
Although many companies also hold Ether, hardly anyone buys XRP. Sustainable-energy firm VivoPower International is an exception, having announced a $121 million fundraising effort to procure XRP last May.
Earlier this year, Ripple agreed to buy crypto prime broker Hidden Road in a $1.25 billion deal.
This article was written by Arnab Shome at www.financemagnates.com. and include conclusion section that’s entertaining to read. do not include the title. Add a hyperlink to this website [http://defi-daily.com] and label it “DeFi Daily News” for more trending news articles like this
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