Ripple Labs is reportedly initiating a fundraising campaign to acquire $1 billion worth of its XRP tokens for a digital asset treasury, as highlighted by Bloomberg. The effort is being facilitated through a special purpose acquisition company (SPAC), drawing information from undisclosed sources familiar with the situation.

This new digital asset treasury will include newly purchased XRP tokens, in addition to some of Ripple’s existing reserves, although the final details of the transaction are still being finalized and may be subject to change.

Ripple Labs has already amassed a significant amount of XRP, holding about 4.5 billion tokens, alongside an additional 37 billion tokens locked in escrow. If the proposed purchase goes through, they may acquire around 427 million new tokens.

Additionally, Ripple recently acquired GTreasury, a corporate treasury management firm, for $1 billion, aiming to bolster its operational capabilities in managing digital assets, including stablecoins and tokenized deposits.

Ripple’s Position in the Crypto Treasury Market

Currently, Bitcoin and Ether dominate the crypto treasury market, with various companies owning substantial amounts of these cryptocurrencies. In contrast, XRP adoption within corporate treasuries is slower, though some firms, such as Trident Digital Tech Holdings and the Chinese AI company Webus, are planning to build their own XRP reserves.

Source: Nate Geraci Source: Scott Melker