Ripple Labs plans to raise $1 billion to accumulate XRP
- Ripple Labs Inc. is leading an effort to raise at least $1 billion to accumulate XRP, according to a Bloomberg report.
- The money will be raised through a special purpose acquisition company, known as a SPAC.
- The planned new digital-asset treasury comes as crypto markets remain fragile, a week after a huge sell-off that forced record liquidations.
Ripple Labs Inc. is reportedly seeking to raise at least $1 billion through a special purpose acquisition company (SPAC) to expand its XRP holdings and strengthen its digital-asset treasury. The initiative comes at a time when broader crypto market sentiment remains cautious, following a recent wave of liquidations and heightened volatility.
Ripple Labs plans to raise $1 billion via a SPAC to accumulate XRP
Bloomberg reported on Friday that blockchain payment firm Ripple Labs Inc. is leading an effort to raise at least $1 billion to accumulate XRP, the digital token linked to the company.
The company plans to raise funds through a special purpose acquisition company (SPAC), which will house them in a new digital-asset treasury (DAT). Moreover, the Ripple will also contribute a share of its XRP to the treasury.
The planned DAT came as crypto markets remain fragile, having experienced a huge sell-off and forced liquidation last Friday.
Nonetheless, Ripple is moving ahead with its DAT fundraising plans — which, if successful, would be the biggest one to focus on XRP.
Apart from this, Ripple announced on Thursday the acquisition of risk management software company GTreasury for $1 billion, as it plans to expand its payment solution to the corporate finance and cash management market. By integrating blockchain-based settlement into traditional treasury operations, Ripple aims to enable corporations to move funds instantly, cut transaction costs and enhance overall working capital efficiency.
These ongoing development projects project a bullish outlook for Ripple’s native token XRP in long term, as the firm’s capital-raising efforts signal strong long-term confidence in its ecosystem, which could boost wider adoption and increase liquidity.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
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