Ripple Labs has announced its intention to raise over $1 billion to establish a special reserve in the cryptocurrency XRP. To raise the funds, the company will utilize a Special Purpose Acquisition Company (SPAC) mechanism, and part of the assets is planned to be provided directly in the form of its own XRP tokens.
This is reported by Finway
Ripple Labs’ Strategy: XRP Reserve and New Acquisitions
According to informed sources, the raised investments will be placed in a new Digital Asset Trust (DAT), which will optimize the use of funds and expand Ripple Labs’ participation in the digital currency market. Part of the assets that the company receives under this program will be represented in the form of XRP tokens, which is expected to further popularize the coin among investors and corporate clients.
Additionally, Ripple Labs has entered into an agreement to acquire GTreasury, a company specializing in corporate liquidity management. The transaction amount was $1 billion. According to representatives of Ripple Labs, this acquisition is expected to enhance interactions with financial directors of companies and organizations working with digital assets, stablecoins, and tokenized deposits.
Market Dynamics and Sentiment Towards XRP
Despite Ripple Labs’ ambitious plans, there has been an increased level of skepticism surrounding XRP recently. Analysts at Santiment have recorded a significant rise in negative sentiments regarding this cryptocurrency. In particular, the level of fear, uncertainty, and doubt (FUD) regarding XRP has reached its highest point in the last six months, coinciding with the period when U.S. President Donald Trump announced trade tariffs.
“According to their data, the level of fear, uncertainty, and doubt (FUD) has reached its highest level since Donald Trump announced trade tariffs — that is, in the last six months.”
The new strategy of Ripple Labs could significantly alter the balance of power in the digital asset market and influence the future dynamics of the XRP exchange rate.