Ripple, Institutional Interest control XRP Price action

Ripple's evolving approach could reshape its role in the digital asset ecosystem, with nearly 42% of the XRP supply held by Ripple. 

Quick overview

  • Ripple's strategy is evolving, with nearly 42% of the XRP supply held by the company, indicating a significant influence over the digital asset ecosystem.
  • The company's leadership believes current market valuations do not reflect the true worth of Ripple's large XRP holdings, as corporate investors increasingly recognize XRP as a treasury asset.
  • Ripple's escrow mechanism allows for controlled liquidity of XRP tokens, supporting its role as a treasury entity while attracting investments from publicly traded companies.
  • This trend highlights a broader integration of digital assets into traditional financial strategies, positioning Ripple as a key player in the cryptocurrency treasury market.

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Ripple’s evolving approach could reshape its role in the digital asset ecosystem, with nearly 42% of the XRP supply held by Ripple.

 

Current market valuations overlook the true worth of Ripple’s large XRP holdings, according to the company’s leadership.  Ripple’s XRP treasury strategy is gaining momentum as more corporate investors increase their holdings, challenging traditional valuations and signaling a shift in business direction.

Ripple now controls over 40% of the total XRP supply through a combination of direct ownership and escrow-managed tokens.

This significant stake gives Ripple substantial influence over the XRP ecosystem and indicates a strategic move toward operating more as a treasury entity.

The escrow mechanism managed by on-ledger smart contracts releases XRP tokens monthly to maintain controlled liquidity without directly affecting the market.

Publicly traded companies increasingly recognize the value of XRP as a treasury asset. Notably, Webus International plans to raise $300 million in XRP, while Trident Digital Tech Holdings aims for $500 million. Other firms such as VivoPower International and Wellgistics Health have also secured large funding rounds to expand their XRP reserves.

This reflects a broader trend of integrating digital assets into traditional financial strategies,  corporate treasury investments in XRP.

Companies are investing in cryptocurrencies that offer high liquidity and utility to diversify their holdings. XRP’s established network and fast transaction speeds make it an attractive option for treasury diversification.

This shift not only benefits Ripple but also positions the company as a key player in the emerging cryptocurrency treasury market

ABOUT THE AUTHOR See More
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks the financial markets with over 15 years of working experience in investment trading.

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