XRP News: Ripple to Establish a New $1 Billion XRP Treasury

In a major XRP news today, Ripple Labs is leading an effort to raise at least $1 billion to establish an XRP treasury, as per a report today. The crypto firm plans to fundraise via a special purpose acquisition company, while also contributing some of its own XRP holdings.

XRP News: Ripple Plans $1 Billion XRP Treasury

Ripple is spearheading a fundraising effort of at least $1 billion to accumulate XRP for a digital asset treasury (DAT), signaling that the recent crypto market crash has not stopped crypto giants from pursuing their business plans, Bloomberg reported on October 17.

The fundraising will be made via a special purpose acquisition company (SPAC), according to people familiar with the matter. Also, Ripple will contribute its own XRP holdings in the proposed $1 billion XRP treasury. The terms of the deal are still being negotiated and may change, the report said.

If successfully established, it could become the largest XRP treasury established so far. Singapore-based Trident Digital plans $500 million raise to build an XRP treasury and Webus International plans $300 million XRP treasury.

Ripple Enters Multi-Trillion Dollar Treasury Market with GTreasury

The XRP treasury news coincides with Ripple acquiring GTreasury for $1 billion, expanding the firm into the multi-trillion dollar treasury market. The fintech company specializes in providing treasury management system software and solutions, with a focus on modernizing global corporate liquidity management systems.

The two companies said they will initially focus on enabling customers to tap into the global repo market as well as enabling real-time cross-border payments at competitive rates.

Brad Garlinghouse, CEO of Ripple, stated that the acquisition will combine blockchain efficiency with treasury expertise. He added that the $120 trillion corporate treasury payments market still has massive opportunities.

Meanwhile, XRP has gained notable interest from institutions this year, but only a few saw it as a corporate treasury reserve asset. Bitcoin and Ethereum still dominate the digital asset treasury narrative this year.

However, the crypto buying for treasuries has slowed now and the DAT model is facing scrutiny. This comes as key firms saw their enterprise value falling below the value of their crypto holdings. As CoinGape reported earlier this week, Metaplanet’s mNAV, the ratio of its market capitalization and debt to its Bitcoin holdings, dropped to 0.99.

XRP Price Falters

XRP price tumbled 3% in the past 24 hours, currently trading at $2.35. The 24-hour low and high are $2.29 and $2.46, respectively. Furthermore, the trading volume has increased by 34% in the last 24 hours, indicating interest among traders.

The derivatives market showed buying in the last few hours, as per CoinGlass data. At the time of writing, the total XRP futures open interest climbed over 2% to $3.91 in the last 4 hours, after it dropped 4% over the last 24 hours. Notably, 4-hour XRP futures OI on CME and Binance jumped by more than 1.50% and 4%, respectively.