Ripple has announced a new $500 million strategic investment round. This financing confirms the Ripple valuation at $40 billion. The round was led by funds affiliated with Fortress Investment Group and Citadel Securities, according to an official statement from Ripple this November 5th.
The investment also saw participation from Pantera Capital, Galaxy Digital, and Brevan Howard. This move follows a $1 billion tender offer earlier in the year, completed at the same valuation. Furthermore, Ripple highlighted recent key milestones, including surpassing $95 billion in total Ripple Payments volume. It also reported that its stablecoin, RLUSD, has exceeded $1 billion in market capitalization.
The decision to bring on heavyweight institutional investors underscores Ripple’s strategy. The company aims to strengthen its institutional network for global expansion. Brad Garlinghouse, Ripple CEO, stated the investment “reflects Ripple’s incredible momentum.” He noted that they validate the market opportunity they are aggressively pursuing. Garlinghouse recalled that the firm has evolved from payments to custody and stablecoins, utilizing assets like XRP.
How will Ripple use this capital injection to dominate institutional payments?
Over the last two years, Ripple has completed six strategic acquisitions. Two of these were valued at over $1 billion. The acquisition of Rail, a stablecoin infrastructure provider, is now a pillar of Ripple Payments. Likewise, the integration of Ripple USD (RLUSD) and XRP has created an efficient ramp for international transactions. The company now holds 75 regulatory licenses, facilitating liquidity management and money movement for clients.
On the other hand, the October acquisition of GTreasury expands corporate cash management capabilities. This allows clients of large companies to leverage stablecoins for 24/7 capital efficiency. Additionally, the purchase of Hidden Road, now Ripple Prime, has strengthened its trading capabilities. Client collateral on Ripple Prime has doubled, and the platform handles over 60 million daily transactions.
This new funding solidifies the Ripple valuation at $40 billion. It reinforces institutional confidence in the company. With a diversified ecosystem spanning payments, stablecoins, and prime services, Ripple is strongly positioned. The company seeks to be the bridge between traditional finance and digital assets, with RLUSD and Ripple Prime leading its next growth phase.
