Ripple announced a new $500 million funding round at a $40 billion valuation, raising funds from major institutional investors including Citadel Securities, Fortress Investment Group, Pantera Capital, Galaxy Digital, Brevan Howard, and Marshall Wace. This round continues the company's successful year and confirms market confidence in its growth strategy.
In its official statement, Ripple noted that the capital raising follows a $1 billion tender offer conducted at the same valuation. This demonstrates continued investor confidence in the company's sustainability and long-term potential.
Ripple's key achievements over the past two years include payment system turnover exceeding $95 billion, a market cap of over $1 billion for the RLUSD stablecoin, six strategic acquisitions, a threefold increase in the Ripple Prime business, and the receipt of 75 licenses from regulatory authorities worldwide. Furthermore, the company repurchased approximately 25% of its shares, strengthening shareholders' positions and increasing internal stability.
Ripple CEO Brad Garlinghouse noted that since its founding in 2012, the company has evolved from a narrow focus on payments to a comprehensive ecosystem including solutions for depositories, stablecoins, corporate treasury, and brokerage. He stated that the use of digital assets such as XRP allows Ripple to develop the infrastructure for a new generation of financial technologies.
The company intends to use the investments raised to strengthen partnerships with traditional financial institutions, especially amid growing legislative support for the cryptocurrency sector. Ripple emphasized the importance of the recently passed GENIUS Act, which promotes the integration of digital assets into the traditional financial system.
Furthermore, Ripple continues to actively expand through acquisitions. In early November, the company acquired Palisade, a developer of custody solutions, which will improve its digital asset storage infrastructure. A month earlier, Ripple closed a $1 billion deal to acquire GTreasury, a provider of corporate treasury solutions.
This series of strategic investments and acquisitions strengthens Ripple's position as a leader in fintech and digital assets. This new financing confirms the company's continued investor confidence and sets the stage for its continued global growth.