Wall Street is plunging into Ripple: why venture capital is getting in now

Ripple recently managed to raise billions of dollars from big names in the financial world. While the company was under strict supervision for years, we are now seeing a turnaround. What is behind this sudden interest from institutional investors?

Investors smell returns

In November, Ripple raised $500 million at a $40 billion valuation. This makes it one of the highest-rated private crypto companies worldwide. Big names such as Citadel Securities, Fortress, Pantera Capital, Brevan Howard and funds linked to Galaxy stepped in.

The reason why large institutions are now getting involved is due to several factors. For example, the terms of this recent deal were unusually favorable. Investors were given the option to sell their shares back to Ripple within three to four years, with a guaranteed annual return of approximately 10 percent. If Ripple itself decides to buy back, the return will even increase to approximately 25 percent per year. This guarantee only expires if Ripple goes public within that period.

Ripple wants everything under one roof

In addition, Ripple has broadened its focus. While for years it was mainly known as a network for international payments with XRP, it is now positioning itself as a broad service provider within the crypto infrastructure.

In parallel with the financing round, Ripple is undergoing a transformation. For example, the company acquired prime brokerage platform Hidden Road (now Ripple Prime) and bought treasury specialist GTreasury for $1 billion. The joint acquisitions had a total value of more than $2.25 billion.

With these steps, Ripple is building an all-in-one platform for digital finance. It focuses on institutional clients and combines custody, treasury management and stablecoin transactions within one ecosystem.

Finally, the crypto company has recently finally had regulatory clarity. Last summer, the years-long case between Ripple and the US Securities and Exchange Commission (SEC) officially came to an end. This happened after both parties filed a joint motion with the court to withdraw their appeal.

XRP falls hard, but analyst predicts legendary breakout

Meanwhile, the XRP price is underperforming. After a peak value of $2.57 in November, the token has fallen to $2.06, a drop of 20 percent. Compared to the all-time high of $3.65 in July, the digital currency has fallen 43.5 percent in value.

According to analyst Steph, Crypto is now looking technically interesting. The token is about to breakout after a long consolidation period of 371 days. In an analysis on

The chart shows that the token is currently in a strong support zone around $2. If history repeats itself, Steph says the next outbreak could become “legendary.”