Ripple has announced its support for Standard Custody in a new financial initiative. The goal is to launch a $1 billion treasury fund for XRP, intended to acquire and manage the digital asset. The announcement came directly from the custody firm, highlighting a key strategy to stabilize the token’s ecosystem long-term.
The fund has the ambitious goal of raising $1 billion. These funds will be used exclusively to buy XRP directly from the market. Standard Custody, a regulated custody entity, will be responsible for managing these assets. The structure seeks to offer a long-term holding solution for large volumes of the asset. This differs from the scheduled sales that Ripple conducts from its escrow. The plan is to absorb a significant amount of XRP circulation.
This news emerges following Ripple’s recent legal victories in the United States. Increasing regulatory clarity appears to have opened the door for new structured financial products around XRP. Historically, the market has been sensitive to XRP sales coming from Ripple’s accounts. This fund proposes a management alternative. It could reduce the price volatility associated with the monthly escrow releases. The move also reinforces Ripple’s confidence in the digital asset.
Will this strategy manage to boost the price of XRP?
The creation of this $1 billion treasury fund for XRP could have noticeable effects on the market. Sustained purchasing demand of this magnitude could create upward pressure on XRP’s price. Furthermore, it offers institutional investors a new avenue for regulated exposure to the asset. This professional custody structure is attractive for patient capital. The XRP ecosystem could also benefit. Greater price stability incentivizes application development and network adoption for payments.
Ripple’s backing of this Standard Custody fund is a strategic move. It seeks to manage the XRP supply more stably and professionally. Market observers will be watching how quickly the fund manages to reach its fundraising target. The success of this initiative could mark a new chapter in managing the token’s economy. Attention is now focused on the plan’s execution and the market’s response.
