Ripple Labs is reportedly looking to raise at least $1 billion to establish a digital asset treasury dedicated to the XRP cryptocurrency, according to a Bloomberg report.
According to the report, the fundraising will be conducted through a special purpose acquisition company (SPAC), with Ripple contributing a portion of its own XRP holdings.
However, further details on the exact amount and transaction structure are still being discussed and subject to change.
While Bitcoin and Ethereum have been the main focus of the crypto market this year, especially in terms of institutional adoption, XRP is seen as less prominent as an underlying asset in the digital asset treasury (DAT) model.
If this plan is successful, the new entity is expected to be the largest digital asset treasury focused exclusively on XRP.
In comparison, Singapore-based Trident Digital previously announced plans to raise $500 million for the same purpose in June.
However, the DAT model is now under review as several major firms such as Strategy, Metaplanet and BitMine have shown unstable market performance, with their company values falling below the value of their underlying crypto holdings.
At the same time, this report also coincides with the announcement of the acquisition of GTreasury by Ripple earlier Thursday.
GTreasury is a Chicago-based fintech company that specializes in corporate treasury management software and solutions. The acquisition is reportedly valued at $1 billion.
Ripple explained that the move is aimed at opening up access to the multi-billion dollar corporate treasury market, as well as the opportunity to penetrate a network of major corporate clients around the world.
