Ripple Labs Considers $1 Billion XRP Treasury Purchase

Ripple Labs is reportedly preparing to raise funds to acquire $1 billion worth of its XRP token for a digital asset treasury, according to Bloomberg. The effort is said to be organized via a special purpose acquisition company (SPAC), with terms of the transaction still being finalized. Ripple is expected to contribute some of its existing XRP holdings to the treasury as part of the deal, though details remain fluid.

Existing XRP Holdings

As of May, Ripple already held over 4.5 billion XRP from a total circulating supply exceeding 59 billion tokens. Should the company proceed with the proposed $1 billion purchase, it could add roughly 427 million XRP to its reserves. Additionally, Ripple has 37 billion tokens locked in an on-ledger escrow, which are released monthly, partially sold, and partially returned to escrow.

Expanding Corporate Treasury Capabilities

In a strategic move to enhance its treasury management, Ripple recently acquired GTreasury, a corporate treasury management company, for $1 billion. The acquisition equips Ripple with infrastructure to manage digital assets in corporate treasuries, including stablecoins and tokenized deposits, and offers avenues to generate yield for clients.

Positioning in the XRP Treasury Market

Currently, Bitcoin and Ether dominate the corporate crypto treasury landscape, with companies holding over $152 billion in Bitcoin and $23 billion in Ether. XRP has seen comparatively limited uptake, though several companies have announced plans to build XRP-focused reserves. Ripple’s reported $1 billion purchase could make it a leading holder in this space, surpassing other initiatives, including a $500 million treasury planned by Trident Digital Tech Holdings, $300 million by Chinese AI firm Webus, and $100 million by VivoPower.