Ripple Labs is leading a $1 billion fundraise for a new public-market vehicle to accumulate XRP, according to Bloomberg. The move would create the largest XRP-focused digital asset treasury to date.
The funds are being raised through a special purpose acquisition company, or SPAC. Ripple is expected to contribute some of its own XRP holdings to the vehicle. Terms are still under discussion.
XRP is the fifth-largest cryptocurrency with a market cap of roughly $138 billion. It's up 13% this year, trailing bitcoin's 16% gain.
The broader digital asset treasury trade has weakened in recent months. Shares of major token accumulators like Strategy and Metaplanet have dropped as crypto turned choppy and investors questioned the sustainability of the model.
Ripple holds 4.74 billion XRP, worth about $11 billion, plus another 35.9 billion XRP in escrow. A public treasury company could provide a new buyer for the token and a way for Ripple to place part of its holdings with investors.