According to a Bloomberg report citing sources familiar with the matter, Ripple Labs is pushing for at least $1 billion in funding to establish a publicly traded XRP treasury through a special purpose acquisition company (SPAC). If the deal goes through, it will be the largest known XRP treasury vehicle to date.

It is proposed to establish a treasury through SPAC.

The core of this arrangement is to allow the new company to continuously hold and accumulate XRP. The report mentions that Ripple is also expected to inject some of its own XRP into the platform. However, the terms are still under discussion, and the final structure and scale may be adjusted. CoinDesk reports that Ripple has not yet commented on this.

Institutional demand faces scrutiny

Over the past year, digital asset treasury companies have become a hot trading theme in the US stock market. Many listed companies have purchased crypto assets through SPACs, reverse mergers, or additional share issuances, allowing investors to gain token exposure in the form of stocks.

However, this model has previously revolved primarily around Bitcoin. If Ripple were to push for the IPO of XRP Treasury, it would essentially be testing something else: whether institutional investors would still be willing to offer XRP a similar treasury valuation logic after the recent crypto market correction.

Ripple holds a large amount of XRP

According to reports, if the funding round is completed, this will be the largest XRP treasury project to date. XRP is currently the fifth largest cryptocurrency by market capitalization, at approximately $138 billion. Year-to-date, XRP has risen by about 13%, while Bitcoin has risen by about 16% during the same period.

Ripple itself holds a significant amount of XRP. According to the company website, as of July 31, Ripple held approximately 4.74 billion XRP in its wallets, worth about $11 billion at current prices; another approximately 35.9 billion XRP were locked in on-chain escrow accounts and are released monthly. The emergence of a large XRP treasury company in the public market could both bring new buyers to the token and allow Ripple to allocate some of its holdings to investors in another way.

Additional information:Aside from Ripple, one of the earlier XRP investment cases came from VivoPower. The company announced a $121 million funding round in May of this year and shifted its investment strategy to focus on XRP.