Ripple Plans $1B XRP Purchase Fund, Sidesteps Escrow
Ripple is set to raise $1 billion in fresh capital to purchase XRP for its new treasury. The move bypasses its roughly 35 billion-token escrow reserve that may be tied to pre-allocated institutional deals. Bloomberg first reported the fundraising, which aligns with a broader trend of institutional XRP treasury builds such as VivoPower’s $19 million fund.
By establishing a formal XRP treasury, Ripple aims to bolster market confidence and signal long-term commitment to liquidity and payment infrastructure. Traders should watch for potential shifts in circulating supply, increased institutional adoption signals, and price impacts driven by treasury demand.
Bullish
Ripple’s decision to raise $1 billion for direct XRP purchases is likely bullish. In the short term, significant buy orders from a formal treasury fund can tighten available supply and spark positive price momentum. Over the long term, establishing a dedicated XRP treasury signals institutional-grade commitment and may attract further institutional adoption, supporting sustained demand. Historical precedents show that projects with active on-chain treasury strategies often see improved market confidence and price stability.