Ripple Labs will lead a fundraising effort of at least $1 billion aimed at creating a new digital asset vault to accumulate XRP, according to a report from Bloomberg.
The funding will be raised through a special acquisition company (SPAC), to which Ripple will transfer its XRP assets, Bloomberg reported, citing sources familiar with the matter.
Ripple has not released any official statement regarding this matter. The report said the terms of the deal were still being negotiated.
If successful, the funding, which aims to raise at least $1 billion, will create the largest XRP-based digital asset vault to date.
Bitcoin and Ethereum are expected to dominate the cryptocurrency market in 2025, especially with regard to institutional adoption and DAT, but XRP has seen significantly less interest as a base asset for DAT. However, this move is expected to increase interest in XRP.
Ripple currently holds 4.74 billion XRP (approximately $11 billion) in its wallet, with an additional 35.9 billion XRP held in an escrow account that will be released monthly.
Despite the steep decline, Ripple remains active in the market, announcing on the same day that it will acquire corporate financial management software provider GTreasury for $1 billion. The company described the acquisition as a strategic move to give corporate financial managers access to digital assets such as tokenized deposits and stablecoins.
XRP ranks fifth among the world's cryptocurrencies with a market capitalization of $138.9 billion. At the time of writing, XRP is trading around $2.31, down 4.4% in the past 24 hours.
*This is not investment advice.
