todayonchain.com

How Ripple’s new $1 billion XRP treasury plans to reshape the token’s future

CryptoSlate
Ripple is planning a $1 billion Digital Asset Treasury (DAT) via a SPAC to accumulate and manage XRP, aiming to boost liquidity and institutional confidence.

Summary

Ripple is reportedly establishing an ambitious $1 billion Digital Asset Treasury (DAT), financed through a Special Purpose Acquisition Company (SPAC), designed to permanently accumulate and manage XRP as a long-term reserve. This structure would create a consistent buyer for the token, funded partly by Ripple contributing from its liquid XRP holdings. This initiative marks a structural shift from Ripple's current strategy of supply restraint to one focused on demand creation and market absorption. While other firms have attempted XRP-centric treasuries with mixed stock performance results, Ripple's proposed DAT would significantly eclipse them. With XRP liquidity currently thin on major exchanges, a $1 billion reserve deployed over 90 days could represent over 20% of visible near-price liquidity daily, potentially causing a short-term price lift of 6% to 15%, depending on the deployment pace, though these gains might fade if buying pauses.

(Source:CryptoSlate)