Wall Street piles in: How Ripple’s quiet pivot led to a $40B valuation
Ripple secured a $500 million raise at a $40B valuation by offering Wall Street investors rare downside protections and guaranteed returns.Summary
Ripple achieved a $40 billion valuation following a $500 million fundraising round in November, attracting major institutional investors like Citadel Securities and Fortress Investment Group. This success is attributed to a strategic pivot following its SEC battle, where Ripple offered investors unique terms, including the option to sell shares back after three to four years at a guaranteed 10% annualized return, or a 25% return if Ripple repurchased them sooner. Despite broadening its focus to include a stablecoin (RLUSD) and acquiring infrastructure firms like Hidden Road and GTreasury to build an institutional settlement stack, some investors still view backing Ripple as a significant bet on XRP, estimating 90% of its net asset value is tied to the token.
(Source：Cointelegraph)