Ripple plans to buy back $1 billion in XRP for digital treasury

Ripple is preparing to raise funds through SPAC to purchase $1 billion in XRP for its own digital treasury and strengthen its position in the market.

Ripple Labs is preparing a large-scale buyback of XRP worth $1 billion to create its own digital treasury (Digital Asset Treasury).

This was reported by Bloomberg, citing sources familiar with the company’s plans. According to the publication, the fundraising will take place through SPAC (special purpose acquisition company) – a special structure for corporate financing.

Ripple’s strategy: consolidation of XRP in the treasury

The newly created Ripple treasury will include newly bought back XRP tokens, as well as some of those that the company already holds on its balance sheet. The terms of the deal are still being negotiated and may change before the final signing. Ripple has not yet provided official comments.

According to the latest market report, the company holds over 4.5 billion XRP out of over 59 billion in circulation. If the $1 billion in XRP buyback goes through, Ripple could buy an additional 427 million tokens.

Reserves and Escrow Management

In addition to free assets, Ripple holds another 37 billion XRP in an escrow smart contract that is unlocked monthly. Some of the tokens are sold on the market, the rest are returned to escrow. This model allows Ripple to regulate liquidity and control the circulation of XRP, while maintaining the stability of the ecosystem.

After the purchase of GTreasury: Ripple expands financial infrastructure

The XRP buyback coincides with Ripple’s recent acquisition of GTreasury, a developer of enterprise treasury management systems, for $1 billion.

The deal gave Ripple the tools to manage digital assets, tokenized deposits, and stablecoins, which the company can use to generate revenue for clients and manage reserves internally.

Ripple aims to lead the corporate treasury market

Bitcoin and ether remain the dominant assets in corporate treasuries today, with $152 billion in BTC and $23 billion in ETH. XRP does not yet have that level of adoption, but Ripple is trying to create the first large institutional reserve of the token.

Other initiatives include Trident Digital Tech Holdings (Singapore), which plans to reserve $500 million in XRP, Chinese AI company Webus with a volume of $300 million, and VivoPower, which is looking to accumulate $100 million in XRP.

Markets watch Ripple’s next milestone

If the deal goes through, Ripple could become the largest holder of corporate XRP treasury in the world.
The move would solidify its position as a key infrastructure player among companies using tokenized assets for corporate payments and capital preservation.