Ripple’s $500 million share sale last month brought in some of the biggest names in global finance but only after investors secured a suite of downside protections that more closely resemble structured credit than a typical venture round, according to a Bloomberg report.

Citadel Securities, Fortress Investment Group, Marshall Wace, Brevan Howard–linked vehicles, Galaxy Digital and Pantera Capital participated in last month's funding round at a $40 billion valuation, the highest ever for a privately held crypto company.

But under the hood, writes Bloomberg's Ryan Weeks, several funds treated it as a concentrated bet on one volatile asset.

Multiple investors concluded that at least 90% of Ripple’s net asset value was tied to XRP, the closely-linked token that maintains distance from the company legally. Ripple controlled $124 billion worth of XRP at market prices in July in its treasury.

Institutions appear comfortable with that exposure, but only with guardrails in place. That hefty, risky exposure caused funds to negotiate the unusually strong protections: 1. The right to sell their shares back to Ripple after three or four years at a guaranteed 10% annualized return,2. A 25% annualized return if Ripple forces a buyback, and 3. A liquidation preference, giving them priority over legacy shareholders in a sale or insolvency.

Those terms amount to a synthetic floor under investors’ capital, making for a structure rarely used in late-stage tech financings but increasingly common as traditional finance adapts its risk-management playbook to crypto’s volatility.

XRP has since fallen roughly 40% from its mid-July peak amid the broad downdraft that hit the broader crypto market October and November.

Meanwhile, U.S. spot XRP ETFs are on track to surpass $1 billion in inflows soon, following a 15-day streak of net investments. The ETFs have likely benefited from the resolution of Ripple's court case with the SEC, which clarified XRP's regulatory status.

Mails sent to Ripple’s press enquiry page and media representatives were not immediately answered in U.S. morning hours Monday.