XRP Reserve Targets Massive Capital Injection in Billion-Dollar Funding Round

In a bold move to revive the digital asset treasury trade, Ripple Labs is spearheading an initiative to amass a staggering $1 billion for a novel public-market entity, specifically designed to accumulate XRP, as revealed by Bloomberg. This audacious endeavor aims to determine whether the treasury trade, which has largely been synonymous with bitcoin, can still yield significant returns beyond the leading cryptocurrency.

According to sources privy to the matter, the fundraising effort will be facilitated through a special purpose acquisition company (SPAC), with the proceeds being allocated to a dedicated XRP-focused digital asset treasury. Ripple is expected to contribute a portion of its own XRP holdings to the venture, although the finer details of the arrangement are still being ironed out and are subject to change.

If successful, this deal would culminate in the creation of the largest known XRP treasury vehicle to date, a significant development given that XRP is currently the world's fifth-largest token, boasting a market capitalization of approximately $138 billion. Despite experiencing a 13% increase in value this year, slightly trailing behind bitcoin's 16% rise, XRP has not garnered the same level of interest from treasury companies as its more prominent counterpart.

The digital asset treasury trade, which emerged as a dominant trend in the crypto market in 2025, has recently experienced a downturn. Companies such as Strategy and Metaplanet, which have invested heavily in accumulating tokens, have witnessed a sharp decline in their share prices as cryptocurrency prices have become increasingly volatile and investors have begun to question the long-term sustainability of this investment strategy.

By backing a larger XRP-focused treasury company, Ripple is seeking to capitalize on the potential demand for XRP among institutional investors. Notably, Ripple holds a substantial 4.74 billion XRP in its wallets, valued at around $11 billion at current prices, in addition to 35.9 billion XRP locked in escrow accounts, which are scheduled for gradual release. A public XRP treasury company would not only create a new buyer for the token but also provide Ripple with an opportunity to strategically divest a portion of its holdings to investors.

In recent months, there have been few notable examples of companies investing in XRP, with one of the more significant instances being VivoPower's $121 million fundraising effort in May to pivot towards XRP investing. Ripple's plan, therefore, will serve as a litmus test for the viability of the treasury trade beyond bitcoin and the appetite for XRP among institutional investors.