Ripple wants to raise $1 billion to buy XRP

The crypto market is faltering, but Ripple continues to roll up its sleeves. According to Bloomberg, the company wants to raise $1 billion in new capital to buy its own cryptocurrency XRP. That could give the price a boost, but that is not what is currently reflected in the graphs.

Billion-dollar plan for an XRP treasury

Ripple would like to raise the money through a SPAC construction (special purpose acquisition company).

That SPAC is a shell company created specifically to raise $1 billion. With that money, Ripple wants to later buy more XRP and build a digital treasury (digital-asset treasury).

The advantage for Ripple is that through such a SPAC it does not have to do an IPO itself or have to visit investors for months. The SPAC raises the money, and Ripple can immediately use it for its plans.

According to insiders, Ripple is also contributing some of its own XRP supply to increase liquidity. This should not only strengthen the currency itself, but also further expand its role as a payment infrastructure for international transactions.

Although Ripple has yet to make an official statement, this is believed to be the largest XRP-focused funding ever. Analysts call it a signal that the company is increasingly positioning itself for the institutional adoption of its technology.

Despite the news, we see that the XRP price has made a dramatic decline. Over the past 24 hours, 7.31 percent of the value has been stolen. But XRP is certainly no exception, because the entire crypto market turns bright red. In this article you can read what lies behind this.

Ripple thinks better

The fundraising coincides with a series of acquisitions with which Ripple is increasingly emerging as a financial services provider rather than just a blockchain company.

For example, Ripple yesterday acquired the American GTreasury, a platform that helps large companies with cash management and risk management, for approximately $1 billion.

By combining GTreasury with Ripple’s blockchain technology, CEO Brad Garlinghouse wants to give companies the ability to move their capital faster and more efficiently.

Ripple previously acquired Hidden Road (prime broker, $1.25 billion) and Rail (stablecoin payment platform, $200 million). The company is steadily building a hybrid ecosystem in which blockchain technology and traditional financial infrastructure merge.