Ripple Eyes $1 Billion Raise For XRP Treasury, Buys GTreasury For $1 Billion

Ripple is reportedly seeking to raise at least $1 billion to establish an XRP treasury and confirmed a separate $1 billion acquisition of treasury management systems firm GTreasury.

Ripple plans to raise the funds for its XRP treasury via a special purpose acquisition company (SPAC) and may contribute some of its own XRP holdings to the new entity, Bloomberg reported, citing people familiar with the matter.

Ripple already holds 4.7 billion XRP, worth about $11 billion, and there are another 35.9 billion tokens that sit in an on-ledger escrow that unlock over time.

If the new treasury is established, it could become one of the largest dedicated to XRP, and would be double the size of the XRP treasury that Singapore-based Trident Digital announced in June.

Ripple Looks To Unlock $120 Trillion Corporate Treasury Market

The plan to create a $1 billion XRP treasury company coincides with Ripple’s acquisition of Chicago-based GTreasury, which provides treasury management system software and solutions. 

Ripple CEO Brad Garlinghouse says the purchase gives the company access to the $120 trillion corporate treasury payments market.

The move is part of the payments firm’s assault on the traditional financial sector. 

“Astounding amounts of cash are trapped in outdated payments systems, creating friction, unnecessary costs, and barriers to entering new markets,” he said. ”Payments are where Ripple first started for exactly these reasons – the infrastructure is complex, siloed and inefficient, but as we know, perfectly positioned to benefit from decentralized financial technologies. ”

With GTreasury, Garlinghouse said Ripple will be able to help CFOs manage all their assets, from stablecoins, to tokenized deposits at scale around the world.

Ripple Has Been On An Acquisition Spree This Year

The GTreasury acquisition is the latest in Ripple’s buying spree this year. 

Hidden Road, a multi-asset prime broker and clearing/financing service provider, was acquired by Ripple for around $1.25 billion in April. Hidden Road clears some $3 trillion worth of trade annually and serves over 300 institutional clients.

In August, Ripple announced its acquisition of the stablecoin-powered payments platform Rail for around $200 million.

All of Ripple’s acquisitions this year are part of the company’s long-term mission to inject itself into the traditional payments infrastructure. 

To that end, it’s applied for a US national bank charter with the US Office of the Comptroller of the Currency (OCC). It’s also seeking a Federal Reserve master account, which will allow the company to hold and settle its stablecoin reserves directly with the Fed. 

Ripple’s XRP token has gained more than 303% in the past year, even as it plummeted over 20% in the past week amid a broad market pullback.