Ripple Leads Planned $1 Billion XRP Treasury Raise: Report
2h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
xrpripplecrypto-treasury
Fazen Markets Editorial Desk
Collective editorial team · methodology
Trades XAUUSD 24/5 on autopilot. Verified Myfxbook performance. Free forever.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The majority of retail investor accounts lose money when trading CFDs. Vortex HFT is informational software — not investment advice. Past performance does not guarantee future results.
Ripple is reportedly orchestrating the launch of a $1 billion digital asset treasury focused on XRP holdings. The plan, according to a report, targets the creation of the largest dedicated XRP treasury vehicle to date. The news arrives as XRP trades at $1.34, up 2.55% on the day, with a market capitalization of $82.99 billion. This initiative seeks to mobilize institutional capital for XRP accumulation even as broader appetite for token-related investment products has cooled following recent market weakness.
Large-scale treasury operations directly influence token supply dynamics and long-term holder concentration. The proposed vehicle's $1 billion target would surpass previous dedicated efforts. In May 2024, a venture firm launched a $100 million fund for XRP ecosystem projects, a fraction of the current ambition. The planned fund also follows a multi-year pattern of institutional product development around XRP, including exchange-traded products in Europe and trust structures in other jurisdictions.
Current market conditions present a complex backdrop. The broader digital asset sector has experienced a significant selloff in recent weeks, pressuring prices and reducing speculative inflows. Investor sentiment toward dedicated crypto accumulation stocks and funds has weakened, reflected in outflows from publicly traded Bitcoin miners and declining premiums for Grayscale's trust products. This risk-off shift makes a new large capital commitment notable for its potential counter-cyclical positioning.
The reported timing may be linked to evolving regulatory clarity and Ripple's own strategic treasury management. Following a pivotal legal ruling in its favor in 2023, Ripple has periodically discussed its XRP holdings strategy. A dedicated external treasury fund could serve to institutionalize long-term holding, provide a potential liquidity backstop for partners, and signal structured, bulk demand to the market during a period of weaker organic retail and institutional flows.
The core data point is the $1 billion target for the treasury vehicle. To contextualize this scale, a $1 billion commitment could absorb approximately 746 million XRP tokens at the current price of $1.34. This represents a significant single demand source against the token's daily trading volume, which stands at $2.28 billion as of midday UTC today. The market capitalization of XRP is $82.99 billion, meaning the fund's target equates to roughly 1.2% of the entire token's valuation.
| Metric | Value | Comparison Point |
|---|---|---|
| Treasury Target | $1,000,000,000 | ~9x larger than 2024's $110M fund |
| XRP Price | $1.34 | Up 2.55% in 24 hours |
| 24h Volume | $2.28B | Treasury target = 44% of daily volume |
| Market Cap | $82.99B | Target is 1.2% of total cap |
The token's performance relative to the broader market is mixed. While XRP's 2.55% 24-hour gain outpaces a relatively flat Bitcoin, it lags the year-to-date performance of several major layer-1 blockchain tokens like Solana and Avalanche. The $82.99 billion market cap maintains XRP's position as a top-five digital asset by valuation, though it remains distant from its all-time high market capitalization achieved during the previous cycle.
A successful $1 billion raise would create a tangible, concentrated buy-side force for XRP. Direct beneficiaries would include OTC trading desks and liquidity providers that facilitate large block trades, potentially seeing increased fee revenue. Secondary effects could lift sentiment across the payments-focused crypto sector, potentially providing a halo effect for tokens like Stellar Lumens (XLM), which operates in a similar use-case corridor. The validation of a nine-figure institutional structure may also renew developer interest in the XRP Ledger ecosystem.
The primary counter-argument is execution risk. Raising $1 billion for a single-asset crypto treasury in a risk-off environment is a formidable challenge. Recent fundraise data shows a sharp decline in capital flowing into dedicated crypto venture and hedge funds. Should the fund close at a fraction of its target, the market impact would be muted and could be interpreted as a sign of waning institutional conviction. The structure's fee model and lock-up terms, not yet detailed, will be critical for investor appeal.
Positioning data from derivatives markets shows a cautious stance. While spot prices have risen, open interest in XRP futures has not shown a commensurate spike, suggesting traders are awaiting confirmation of the fund's progress before increasing leveraged bets. Flow is likely moving into spot accumulation strategies by existing long-term holders rather than speculative derivatives, aligning with the treasury's stated accumulation thesis. Short interest remains elevated on some platforms, indicating persistent skepticism about sustained price appreciation.
The next immediate catalyst is an official confirmation or denial from Ripple regarding the report, expected within days. Following that, market participants will monitor for a formal fund announcement, which would detail key parameters like the general partner, minimum investment size, and custody structure. The quarterly release of Ripple's XRP Markets Report, typically published in early July, may provide commentary on ecosystem development and institutional adoption trends relevant to the fund's thesis.
Key XRP price levels to watch include the recent swing high near $1.38, which acted as resistance, and support around the $1.28 level, which held during the last selloff. A sustained break above the $1.40 handle would likely require confirmation of meaningful capital commitments to the treasury fund. Traders will also monitor the XRP/BTC trading pair for signs of relative strength, as outperformance against Bitcoin would signal asset-specific demand rather than generalized crypto market beta.
Broader market conditions will heavily influence the fund's reception. Upcoming U.S. CPI data on June 12 and the Federal Open Market Committee meeting on June 18 will set the tone for risk assets. Any signals of a more dovish monetary policy could improve the environment for capital raises. Conversely, persistent inflation data could extend the current risk-off period, making the fund's marketing efforts more difficult and potentially delaying its final close.
A digital asset treasury fund is an investment vehicle, typically structured as a fund or trust, designed to accumulate and hold a specific cryptocurrency on behalf of its investors. Unlike a hedge fund that actively trades, a treasury fund's primary goal is long-term strategic holding, often to support a specific blockchain's ecosystem, provide liquidity for partners, or gain exposure to the asset's potential appreciation. These funds impact markets by locking up a portion of the circulating supply, potentially reducing sell-side pressure.
Vortex HFT is our free MT4/MT5 Expert Advisor. Verified Myfxbook performance. No subscription. No fees. Trades 24/5.
Trade the assets mentioned in this article
Trade on BybitSponsored
Open a demo account in 30 seconds. No deposit required.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.