Highlights
- VivoPower invests $100 millio in XRP tokens on Flare Networks.
- The company aims to generate yields on its treasury assets via the Flare deal.
- The deal represents a significant milestone as the first large-scale deployment of Flare's FAssets system.
Nasdaq-listed VivoPower International (VVPW) has inked a strategic partnership with Flare Networks, deploying $100 million worth of XRP tokens. This move intends to tap into the vast potential of decentralized finance (DeFi) and unlock new revenue streams.
VivoPower Eyes DeFi Expansion Via XRP Investment on Flare
Flare Networks, a layer 1 blockchain platform, shared an X post earlier today, unveiling its collaboration with VivoPower. The Nasdaq-listed company is reportedly deploying $100 million worth of XRP on Flare. As part of its transition to digital asset treasury management, VivoPower aims to generate yields on its treasury assets via the latest deal.
Significantly, VivoPower’s alliance with Flare marks a pivotal milestone as it is the first large-scale implementation of Flare’s FAssets system. This innovation enables the token to tap into DeFi opportunities through protocols like Firelight, generating yield that will be reinvested to further grow VivoPower’s XRP holdings. In addition, the platform will also integrate Ripple’s RLUSD stablecoin as a cash-equivalent reserve asset. VivoPower CEO Kevin Chin stated,
It’s no longer enough to simply hold XRP; the duty to our shareholders is to make it productive. Adopting Ripple’s RLUSD is a cornerstone of this strategy, providing the stability and compliance this next-generation treasury demands.
At the same time, the deal is a significant development for Flare for institutional validation. Co-founder Hugo Philion highlighted that Flare’s FAssets system serves as a gateway for institutions to tap into DeFi opportunities with assets like XRP. He noted, “Our FAssets system […] is more than just a bridge; it’s a gateway that allows institutions to bring assets like XRP into programmable DeFi environments to generate yield, all while retaining their fundamental security.”
Strategic Investments Continue
Recently, as CoinGape reported, VivoPower has become the first public company to create an XRP-focused Treasury. With an initial investment of $121 million, the company plans to acquire more tokens. Saudi Prince Abdulaziz bin Turki Abdulaziz Al Saud, Chairman of Eleventh Holding Company, spearheaded the fundraising effort. The prince stated,
We have been investors in the digital asset sector for a decade and have been long-term holders of XRP. After reviewing a number of listed vehicles seeking to embrace a digital asset treasury model, we selected VivoPower given its strategic focus on XRP and its objective to contribute to building out of the XRPL ecosystem.
VivoPower recently partnered with BitGo to acquire $100 million worth of XRP tokens, joining a growing trend of platforms investing in the digital asset. Other companies like Webus are also exploring XRP integration, with plans to raise $300 million through non-equity financing sources.
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