.png){kind=logo}
Ripple Labs is preparing to raise $1 billion to support the creation of a dedicated XRP treasury, according to a Bloomberg report citing sources familiar with the matter. The proposed fundraiser will be conducted through a Special Purpose Acquisition Company (SPAC). The new Digital Asset Treasury (DAT) will comprise newly acquired XRP tokens, as well as contributions from Ripple’s existing holdings.
Ripple already holds a substantial position in XRP. As of May, the company controlled 4.5 billion tokens in its own wallet, with an additional 37 billion tokens locked in on-ledger escrow. These escrowed tokens are released monthly, and unused portions are returned to the escrow.
The proposed treasury initiative could boost Ripple’s XRP holdings by up to 427 million, given the token’s current price of approximately $2.35. This strategy would position Ripple among the top institutional holders of XRP, establishing a structured treasury similar to the funds managed by other cryptocurrency entities and corporations for Bitcoin and Ethereum.
On Thursday, Ripple furthered its corporate asset strategy by acquiring GTreasury, a treasury management firm, in a $1 billion deal. This acquisition adds infrastructure that enables Ripple to oversee stablecoins, tokenized deposits, and other digital assets for corporate clients.
In parallel with its treasury plans, Ripple recently made a $500 million XRP transfer to a newly created account. The transaction, first noted by XRP Ledger validator “Vet,” involved 220 million XRP being moved to an account that is neither escrowed nor protected by multi-signature security. Vet described the lack of safeguards for such a high-value account as “surprising,” though he clarified that creating new accounts is common for Ripple.
This transfer does not appear linked to Ripple’s monthly XRP unlocks, which are independently managed and partially relocked if unused. It may represent an early contribution to the upcoming XRP treasury.
Ripple currently controls approximately 41.85 billion XRP, including escrowed assets. This total accounts for just over 35% of the token’s entire supply, granting the firm significant influence over token liquidity and distribution.
Vet said that creating a digital asset treasury can act as a long-term distribution channel for XRP. He highlighted that institutional investors tend to hold onto their assets, which lowers the chance of immediate sell-offs in the open market. This strategy could help stabilize the XRP price during broader market swings.
After the treasury announcement and transfer news, XRP traded cautiously. The token fell to a session low of $2.19 but recovered to $2.34 by the end of October 18's trading session. Elevated institutional activity helped absorb initial selling pressure.
Trading volume surged to 246.7 million, nearly three times the 24-hour average. Analysts observed that the price action indicated strong buying interest near key support levels of $2.23 to $2.25. Resistance remains at $2.35 to $2.38, with traders watching for a potential breakout above $2.40.
The price movement aligns with investor expectations surrounding the US Securities and Exchange Commission (SEC) decisions on six spot XRP ETF filings. The review period is open until October 25. Traders are attentively monitoring this timeline, as regulatory approval may impact institutional investments and XRP’s overall market position.
