Crypto firm Ripple has announced the raise of USD 500 million, aimed at deepening relationships with financial institutions and supporting its expanding product suite.
Following this announcement, the funding round came in a strategic investment valuing it at USD 40 billion and was led by Fortress Investment Group and Citadel Securities.
In addition, according to officials of the company, the investment comes on the heels of Ripple's USD 1 billion tender offer that came earlier this year at the same valuation.
More information on Ripple’s USD 500 million funding round
According to Reuters, in the wake of the GENIUS Act, which was developed in order to create a regulatory framework for stablecoins, more institutions and businesses prioritise the process of adopting stablecoins such as Ripple USD (RLUSD) for treasury payments and collateral management. At the same time, fintechs and traditional financial firms are increasingly turning to stablecoins in order to streamline cross-border payments, speed up settlements, and broaden the overall access to digital finance.
Ripple, which represents a company that was developed to provide crypto solutions for businesses, is expected to leverage the fresh capital in order to deepen relationships with financial institutions and support its expanding product suite, which now includes custody, stablecoins, prime brokerage, and corporate treasury services. Furthermore, under the more crypto-friendly Trump administration, Ripple aims to expand institutional use of its XRP token, as well as deepen its footprint in capital markets.
This announcement follows the company’s announcement of its acquisition of Palisade, a digital asset wallet and custody company, aiming to further expand its custody capabilities. Through the process of moving forward with this deal, Ripple intended to substantially scale its custody capabilities and directly serve the needs of fintech companies, crypto-native firms, and corporates. Furthermore, the company developed Ripple Custody for banks and financial institutions that want to secure digital assets, stablecoins, or Real World Assets (RWAs).
Earlier in the same month, Ripple acquired GTreasury for USD 1 billion, an initiative that was set to enable the firm to break into the corporate treasury market.
