Ripple is gearing up for a groundbreaking endeavor with a $1 billion digital-asset treasury (DAT) aimed at accumulating and managing XRP as a long-term reserve.
As per a Bloomberg report, the project would be funded through a Special Purpose Acquisition Company (SPAC), a common financial structure for raising capital through IPOs and merging with target companies.
The plan involves creating a treasury vehicle that would steadily acquire XRP, establishing a permanent buyer for the token.
Ripple is set to contribute a portion of its 4.7 billion liquid XRP holdings (worth approximately $11 billion) to provide immediate liquidity to the project and demonstrate confidence in its ecosystem.
Ripple’s Relationship with XRP
Ripple and XRP are distinct entities often mistaken for each other.
Ripple is a private crypto company that develops global payment solutions using digital assets like XRP and Ripple USD (RLUSD).
Notably, Ripple is the largest holder of XRP, controlling about 42% of the total 100 billion supply.
Ripple has 35 billion XRP tokens locked in escrow and releases one billion monthly according to an on-ledger schedule. Approximately 60% of these monthly releases are usually re-locked, setting a self-imposed cap to stabilize issuance and maintain market trust.
The DAT would shift focus from supply restraint to demand creation.
Rather than controlling outflows, Ripple would indirectly stimulate inflows by attracting institutional capital to an entity mandated to purchase XRP. This represents a structural shift from emission control to market absorption.
XRP Treasury Companies
The concept of an XRP-focused company is not entirely new, with the crypto industry witnessing various versions for different digital assets, including Bitcoin.
Over the past year, a few companies have experimented with XRP-centric reserves to varying degrees of success.
Notably, Singapore’s Trident Digital announced a $500 million fund in June, while Webus International sought $300 million in May to support its chauffeur payments network.
Additionally, VivoPower International and Wellgistics followed with smaller allocations of $121 million and $50 million, respectively.
However, their stock performance has been less than stellar.
Since their announcements, these companies have seen their shares drop by up to 70%, underscoring how digital-asset treasuries can amplify hype and risk.
Nevertheless, some companies like Webus and Wellgistics are doubling down on the XRP ecosystem for growth. For them, XRP treasuries are not short-term trades but infrastructure investments, creating capital pools to support cross-border liquidity and enterprise payment networks.
Ripple’s proposed DAT, however, would overshadow them all.
At current prices around $2.30, a $1 billion reserve amounts to approximately 435 million XRP, or about 0.75% of the 60 billion in circulation, based on CoinGecko data.
Impact on XRP Price
An XRP treasury’s consistent buying pressure will help strengthen price floors and institutional trust in the digital asset.
Data from CoinMarketCap reveals that XRP’s liquidity on major exchanges is notably thinner compared to tokens like Solana and Ethereum.
Across the top ten spot exchanges, including Binance, Coinbase, Bybit, and Upbit, the combined order-book depth of around ±2 percent equates to roughly $51 million.
Given this scenario, Ripple’s proposed $1 billion digital-asset treasury, if deployed evenly over 90 days with daily purchases of around $11 million, would represent over 20% of all visible liquidity near the price on any given day.
Furthermore, this would be approximately twenty times the total depth within that immediate trading range. Such concentration indicates that the market could react more sharply to sustained buying activity from the DAT firm.
Based on CryptoSlate’s assessment of current exchange depth and historical price elasticity, even a moderate execution could significantly impact short-term valuations.
| Deployment pace | Share of visible depth absorbed | Modeled short-term impact* | Projected move (from $2.30) |
|---|---|---|---|
| Slow (180 days) | ≈ 10 % | +2 – 3 % | $2.35 |
| Moderate (90 days) | ≈ 20 % | +6 – 8 % | $2.45 – $2.48 |
| Fast (45 days) | ≈ 40 % + | +12 – 15 % | $2.55 – $2.65 |
While the accumulation process would likely involve OTC and algorithmic trading to minimize visible slippage, the liquidity concentration suggests that even cautious deployment could trigger a temporary 8–15% price surge before market adjustments.
However, these gains could diminish if the treasury pauses purchases or if secondary holders sell during a price increase.
