According to Bloomberg, Ripple Labs is said to be preparing a fundraising initiative to acquire $1 billion worth of its XRP token to maintain a digital asset treasury.
This fundraising event is set to be conducted through a special purpose acquisition company (SPAC), Bloomberg reported on Friday, citing unnamed sources familiar with the situation.
The digital asset treasury (DAT) will include the newly purchased XRP (XRP), alongside some of Ripple’s existing reserves, but the specifics of the transaction are still under discussion and may evolve prior to finalization, according to Bloomberg’s reports.
Ripple Labs did not provide an immediate comment in response to a request.
Ripple’s significant XRP holdings
According to its May markets report, Ripple held over 4.5 billion XRP, as part of a total supply exceeding 59 billion. If the company proceeds with the proposed $1 billion purchase, it could acquire an additional 427 million for its assets.
Additionally, Ripple Labs has another 37 billion XRP secured in an on-ledger escrow, which is released monthly; a portion of this is sold, while the remainder is returned to escrow.
On Thursday, Ripple finalized its acquisition of GTreasury, a corporate treasury management firm, for $1 billion, aligning with its strategy to expand operations.
This acquisition equips the company with the infrastructure needed to manage digital assets held within corporate treasuries, including stablecoins and tokenized deposits that can also generate yield for clients.
Related: From coffee shops to airlines: Who accepts Bitcoin, Ether and XRP in 2025
Potential for Ripple to lead in XRP treasury
Bitcoin (BTC) and Ether (ETH) currently dominate the crypto treasury landscape, with companies holding over $152 billion in Bitcoin and $23 billion in Ether.
In contrast, XRP has not been as widely adopted. The notable companies intending to acquire XRP for their treasuries include Trident Digital Tech Holdings, a Singapore-based Web3 firm, which plans to establish an XRP treasury of up to $500 million.
Chinese AI company Webus has also expressed intentions to allocate $300 million, while VivoPower has committed to forming a $100-million XRP-centric reserve.
Magazine: Hong Kong isn’t the loophole Chinese crypto firms think it is
