Ripple Labs is reportedly on the verge of initiating a fundraising campaign aimed at purchasing $1 billion worth of its XRP tokens to hold in a digital asset treasury, as per Bloomberg’s report.

The fundraising will take place through a special purpose acquisition company (SPAC), as cited by unnamed sources familiar with the situation.

The new treasury is expected to include purchased XRP tokens and a portion of Ripple’s existing reserves, although specifics are still in negotiations and may alter before completion.

Ripple Labs already possesses a substantial amount of XRP, with an estimated 4.5 billion tokens in its reserves and an additional 37 billion tokens locked in escrow.

Recent Developments

On Thursday, Ripple made headlines by acquiring the corporate treasury management firm GTreasury for $1 billion, bolstering its business acquisition strategy. This merger aims to enhance its infrastructure for managing digital assets within corporate treasuries.

Competitive Landscape

Currently, Bitcoin and Ether are at the forefront of the crypto treasury landscape, with companies holding substantial amounts in these assets. Notably, Ripple’s potential acquisition could position it as a major player in the XRP treasury sector.