Ripple Labs is leading an effort to raise at least $1 billion to establish a new digital asset treasury for XRP , Bloomberg reported, citing sources familiar with the matter.
According to the report , the fundraise is set to be made via a special purpose acquisition company, with Ripple contributing its own XRP holdings. The details of the raise and the transaction structure are still being discussed and remain subject to change, the report said.
The Block has reached out to Ripple Labs for comment.
While bitcoin and ether have dominated the crypto market narrative this year, particularly around institutional adoption, XRP has gained notably less traction as a base asset for DATs.
If successfully established, the new entity could become the largest digital asset treasury dedicated to XRP. In June, Singapore-based Trident Digital announced plans to raise $500 million to build an XRP treasury.
However, the DAT model is now under scrutiny, as key firms, including Strategy, Metaplanet, and BitMine, have seen their market performance falter, with their enterprise values falling below the value of their underlying crypto holdings.
Meanwhile, this report coincides with Ripple's announcement earlier on Thursday that it acquired GTreasury , a Chicago-based fintech company that specializes in providing treasury management system software and solutions, for $1 billion.
Ripple said in the announcement that it aims to open up the multi-trillion dollar corporate treasury market and gain access to many of the largest and most successful corporate customers.
The two companies said they will initially focus on enabling customers to tap into the global repo market as well as enabling real-time cross-border payments at competitive rates.
XRP, the world's fifth-largest cryptocurrency, fell 3.33% in the past 24 hours to trade at $2.35 amid a broader market downturn.