Ripple Targets $1 Billion XRP Treasury Through Potential SPAC Deal
Ripple Labs is reportedly exploring a bold financial maneuver aimed at significantly expanding its influence within the digital asset space. According to sources familiar with the matter, the blockchain company is in the early stages of planning a capital raise of at least $1 billion through a special purpose acquisition company (SPAC). The funds would support the creation of a large-scale XRP-focused digital asset treasury.
This move follows Ripple’s recent $1 billion acquisition of GTreasury, a prominent U.S.-based treasury management platform. The integration of GTreasury’s financial infrastructure could form the operational core of the proposed XRP treasury, enabling Ripple to manage a vast reserve of its native token in accordance with traditional corporate finance standards.
SPACs, or special purpose acquisition companies, are shell corporations listed on public stock exchanges, designed to acquire private companies or assets, thereby allowing them to go public without undergoing the traditional IPO process. This route has become increasingly popular among crypto firms seeking faster access to public markets and reduced regulatory burdens.
Ripple’s plan, still under discussion and not officially confirmed, would reportedly involve contributing a portion of its existing 4.74 billion XRP holdings to the new treasury entity. If successfully executed, this would position the resulting vehicle as one of the largest XRP-dedicated treasuries globally.
Although Ripple has yet to issue a formal statement, insiders suggest that the SPAC deal could serve as a strategic pivot, leveraging Ripple’s XRP reserves to build a robust, structured treasury similar to those emerging in the broader crypto sector. The move would also align with the company’s long-term vision of integrating blockchain-based assets into enterprise finance.
A few companies have already shown interest in establishing similar digital asset treasuries. Notably, Nasdaq-listed VivoPower, originally an energy solutions provider, has shifted its business model to focus in part on XRP-related initiatives. Similarly, Trident Digital Tech Holdings, based in Singapore, has hinted at exploring an XRP-focused treasury, though definitive steps have yet to materialize.
Despite XRP’s longstanding presence in the crypto market, it has generally not attracted the same level of attention from treasury investors as assets like Bitcoin, Ethereum, or Solana. Ripple’s initiative could mark a turning point, catalyzing broader institutional interest in XRP as a strategic treasury reserve asset.
The timing of this rumored SPAC initiative is particularly noteworthy. It comes just one day after Ripple’s acquisition of GTreasury, which provides advanced tools for cash forecasting, liquidity management, risk mitigation, and regulatory compliance. These capabilities are expected to play a crucial role in managing a large XRP reserve with the level of oversight required by institutional investors and corporate stakeholders.
Market response to the news has been muted. Following a brief price surge driven by speculation, XRP has retreated, posting a 2.5% decline over the past 24 hours. Despite the lack of a sustained rally, analysts suggest that a successful SPAC-backed treasury could provide long-term support for XRP’s valuation and liquidity.
The proposed treasury could offer several strategic advantages for Ripple. First, it would allow the company to exercise greater control over XRP’s circulation and liquidity in the market. Second, it could serve as a financial buffer or investment pool, enabling Ripple to fund future acquisitions, partnerships, or ecosystem development initiatives. Finally, such a treasury might reassure investors and regulators about Ripple’s long-term commitment to XRP, particularly as the company continues navigating legal challenges with the U.S. Securities and Exchange Commission.
If Ripple proceeds with the SPAC route, it would join a growing list of crypto firms that have turned to this mechanism to bypass the complexity of traditional public offerings. This approach could accelerate Ripple’s ambitions to institutionalize XRP and embed it more deeply in global financial infrastructure.
Industry observers are also speculating that Ripple may use the newly raised capital to incentivize partnerships with banks, fintech firms, and cross-border payment providers, further driving real-world utility for XRP. This aligns with Ripple’s broader mission to revolutionize international money transfers using blockchain technology.
Moreover, the strategic deployment of XRP through a treasury structure could help stabilize the token’s price volatility, promoting broader adoption in payment corridors and DeFi platforms. A controlled, transparent mechanism for XRP distribution might also mitigate fears of oversupply that have occasionally pressured the token’s market performance.
As the crypto industry matures, the establishment of formal treasuries could become a key trend, particularly for projects that aim to maintain long-term sustainability. Ripple, with its substantial XRP reserves and growing suite of financial tools, appears well-positioned to lead this evolution.
In conclusion, while the SPAC initiative remains unconfirmed, the combination of Ripple’s recent GTreasury acquisition and its potential treasury strategy signals a significant step toward institutionalizing XRP. If executed successfully, it could redefine the role of digital assets in corporate finance and elevate Ripple’s standing in the global fintech arena.