Ripple Labs is reportedly on the cusp of launching a fundraising effort to purchase $1 billion worth of its XRP token to hold in a digital asset treasury, according to Bloomberg.
The fundraiser is being organized through a special purpose acquisition company or SPAC, Bloomberg reported on Friday, citing anonymous people with knowledge of the matter.
The digital asset treasury (DAT) will consist of the freshly bought XRP (XRP) and Ripple will also throw in some of its own stockpile, but the exact terms of the transaction are still being hashed out, and could change before the deal is inked, according to Bloomberg’s sources.
Ripple Labs didn’t immediately respond to a request for comment.
Ripple already a significant XRP holder
Ripple had a stash of over 4.5 billion XRP, according to its May markets report, out of a total circulating supply of more than 59 billion. If the company moves forward with the reported $1 billion buy, it could scoop up another 427 million for its stash.
At the same time, Ripple Labs has another 37 billion tokens locked in an on-ledger escrow, which is released monthly; some of this amount is sold, while the remainder is returned to escrow.
On Thursday, Ripple acquired corporate treasury management company GTreasury for $1 billion as part of its business acquisition strategy to expand operations.
The deal provides the company with infrastructure to manage digital assets held in corporate treasuries, including stablecoins and tokenized deposits, which can also be used to generate yield for clients.
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Deal would make Ripple the leading XRP treasury
Bitcoin (BTC) and Ether (ETH) are leading the crypto treasury race, with companies holding over $152 billion in Bitcoin and $23 billion in Ether.
In comparison, XRP hasn’t been as readily taken up. The leading companies with an intention to buy XRP for their treasuries include Trident Digital Tech Holdings, a Web3 company based in Singapore, which has announced that it will establish an XRP treasury of up to $500 million.
Chinese AI company Webus also flagged plans to allocate $300 million, and VivoPower said it will attempt to accumulate a $100-million XRP centric reserve.
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