Wall Street Bets $500M on Ripple as XRP Treasury Dominates Value

XRP trades near $2.06 after a month that saw an 8.75% decline, though the token recovered 2.02% over the past week. Market sentiment shifted as Ripple closed a $500 million funding round that marked the company’s strongest move toward institutional alignment this cycle. 

The raise set Ripple’s valuation at $40 billion and drew attention from major firms that have monitored the company’s long-running regulatory and market position.

Ripple Lands Major Capital With Structured Protections

According to Bloomberg, Ripple secured the funds through a share sale structured to appeal to institutions seeking crypto exposure with clear downside protection. Citadel Securities, Fortress Investment Group, Marshall Wace, Brevan Howard–linked entities, Galaxy Digital and Pantera Capital participated. The round resembled structured credit rather than a typical late-stage venture deal because investors negotiated terms that shield their commitments from crypto volatility.

Source: Bloomberg

The agreement included the option for investors to sell their shares back to Ripple after three or four years with a guaranteed 10% annual return. If Ripple initiates a repurchase, the return rises to 25% annually. Investors also received liquidation preference rights that put them ahead of existing shareholders in the event of a sale or restructuring. These terms signaled that incoming capital required firm contractual protections before entering exposure tied to Ripple’s business model.

XRP’s Influence Shapes the Funding Round

Bloomberg reported that investors viewed Ripple as an entity whose valuation was driven primarily by its XRP treasury. Several funds concluded that up to 90% of Ripple’s net asset value came from its holdings. Ripple held $124 billion worth of XRP at market prices in July before a broader correction swept the sector. Despite a 40% drawdown from mid-summer and a 16% slide since late October, Bloomberg estimates Ripple’s current holdings at more than $83 billion.

This figure sits well above Ripple’s $40 billion equity valuation, and the spread-shaped negotiations. Ripple’s token reserves influenced the funding structure, as institutions sought protective clauses while acknowledging the company’s asset scale. The deal showed that XRP’s size, liquidity and long-term presence in the market remain central to how institutional investors price Ripple’s business.

Institutional Interest Extends Into XRP ETFs

Institutional attention reached XRP through exchange-traded products as well. U.S. spot XRP ETFs continue to attract significant inflows since launching on November 14. Data from SoSoValue shows net inflows of over $900 million after 15 consecutive days of positive activity. 

Products from Canary Capital, Grayscale, Bitwise and Franklin Templeton brought most of the inflows. Several market analysts expect the ETFs to cross the $1 billion level shortly.

Source: SosoValue

Quantum Economics founder Mati Greenspan noted that institutions view XRP’s regulatory clarity, long operational history and market position as attractive components for index-based and retirement-account exposure. 

He said the inflow surge stems from structural access rather than reactionary trading behavior. The resolution of Ripple’s legal dispute with the SEC in August offered another catalyst, as the ruling confirmed that XRP does not classify as a security. Ripple still paid a $125 million penalty for past securities law violations, yet the decision removed a major obstacle for regulated financial platforms.

XRP Gains Traction Through Expanding Market Access

Market observers point to a shift in how XRP circulates within traditional finance pipelines. Retirement accounts, brokerage platforms and institutional desks can now access XRP through large ETF providers, including Vanguard. ETF issuers have locked up hundreds of millions of dollars’ worth of XRP at a time when its spot price trades near the $2 zone. This trend places XRP inside the same structural channels that elevated Bitcoin and Ethereum adoption.

Ripple continues to diversify its business with acquisitions such as Hidden Road and GTreasury, although it has not announced an IPO timeline. Investors now hold downside-protected exposure while awaiting developments that may influence Ripple’s future market role.