Reports indicate that Ripple Labs is preparing to initiate a fundraising campaign aimed at acquiring $1 billion worth of its XRP token to maintain a digital asset treasury, as outlined by Bloomberg.
The fundraising initiative is structured through a special purpose acquisition company (SPAC), Bloomberg reported on Friday, referencing anonymous sources familiar with the situation.
The digital asset treasury (DAT) will comprise the newly acquired XRP (XRP), with Ripple contributing part of its existing holdings; however, the specific details of the transaction are still being discussed and may change before finalization, according to Bloomberg’s insiders.
Ripple Labs has yet to respond to a comment request.
Ripple already a significant XRP holder
According to its May markets report, Ripple holds over 4.5 billion XRP, as reported, from a total circulating supply exceeding 59 billion. If the company proceeds with the proposed $1 billion purchase, it could acquire an additional 427 million for its reserves.
Moreover, Ripple Labs has an additional 37 billion locked in an on-ledger escrow, which is released on a monthly basis; some of this amount gets sold, while the rest is returned to escrow.
Recently, Ripple acquired the corporate treasury management firm GTreasury for $1 billion as part of a strategic business acquisition to enhance its operations.
This acquisition will equip the company with the infrastructure needed to manage digital assets in corporate treasuries, including stablecoins and tokenized deposits, which can be utilized to generate yield for clients.
Related: From coffee shops to airlines: Who accepts Bitcoin, Ether and XRP in 2025
Deal would make Ripple the leading XRP treasury
Currently, Bitcoin (BTC) and Ether (ETH) dominate the crypto treasury landscape, with companies holding upwards of $152 billion in Bitcoin and $23 billion in Ether.
In contrast, XRP adoption has been slower. Notable companies intending to acquire XRP for their treasuries include Trident Digital Tech Holdings, a Web3 firm based in Singapore, which announced plans for an XRP treasury of up to $500 million.
Chinese AI company Webus has also indicated it will allocate $300 million, while VivoPower announced plans to build a $100-million XRP-centered reserve.
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