Ripple News: Wall Street Saw Company as 90% XRP, Then Offered $500M With a Catch

Ripple's recent $500 million share sale, which attracted major global finance names like Citadel Securities and Pantera Capital at a $40 billion valuation, was structured with unusual downside protections resembling structured credit rather than typical venture financing. This was because multiple investors perceived that at least 90% of Ripple's net asset value was tied to the volatile XRP token. To mitigate this concentrated risk, investors negotiated strong guardrails, including the right to sell shares back at a guaranteed 10% annualized return, a 25% return if Ripple forced a buyback, and liquidation preference over legacy shareholders. These terms created a synthetic capital floor, a structure increasingly adopted by traditional finance adapting to crypto volatility.

(Source：CoinDesk)