Ripple plans  billion XRP Treasury, buys GTreasury for  billion

Ripple plans $1 billion XRP Treasury, buys GTreasury for $1 billion

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Ripple is reportedly trying to raise at least $1 billion to establish an XRP treasury and has confirmed a separate $1 billion acquisition of treasury management systems company GTreasury.

Ripple plans to raise the funds for its XRP treasury through a special purpose acquisition company (SPAC) and could contribute some of its own XRP holdings to the new entity, Bloomberg. reportedciting people familiar with the matter.

Ripple already owns 4.7 billion XRP, worth about $11 billion, and there are another 35.9 billion tokens held in on-ledger escrow that will be unlocked over time.

If the new treasury is established, it could be one of the largest for XRP, and would be twice the size of the XRP treasury that Singapore-based Trident Digital announced in June.

Ripple looks to unlock a $120 trillion government bond market

The plan to create a $1 billion XRP treasury company coincides with Ripple’s acquisition of Chicago-based GTreasury, which provides treasury management system software and solutions.

Ripple CEO Brad Garlinghouse says the purchase gives the company access to the $120 trillion corporate government bond market.

The move is part of the payments company’s attack on the traditional financial sector.

“Amazing amounts of cash are tied up in outdated payment systems, creating friction, unnecessary costs and barriers to entering new markets,” he said. “Payments are where Ripple first started for exactly these reasons: the infrastructure is complex, siled and inefficient, but as we know, perfectly positioned to take advantage of decentralized financial technologies.”

With GTreasury, Garlinghouse says Ripple can help CFOs manage all their assets, from stablecoins to tokenized deposits at scale around the world.

Ripple is on an acquisition spree this year

The GTreasury acquisition is the latest in Ripple’s buying spree this year.

Hidden Road, a multi-asset prime broker and clearing/financing services provider, was acquired by Ripple in April for approximately $1.25 billion. Hidden Road processes approximately $3 trillion in trades annually and serves more than 300 institutional clients.

In August, Ripple announced the acquisition of stablecoin-powered payments platform Rail for approximately $200 million.

All of Ripple’s acquisitions this year are part of the company’s long-term mission to inject itself into the traditional payments infrastructure.

To this end, it has applied for a US national banking charter from the US Office of the Comptroller of the Monet (OCC). It is also seeking a Federal Reserve master account, which would allow the company to hold and settle its stablecoin reserves directly with the Fed.

Ripple’s XRP token has won down more than 303% in the past year, while the stock has plummeted more than 20% in the past week due to a broad market pullback.

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