- Ripple currently holds around 42% of XRP’s total supply through direct holdings and escrow-managed tokens.
- Public companies like Trident and Webus are investing hundreds of millions into building XRP treasuries.
- Ripple’s leadership signals that its outdated valuation fails to account for its extensive XRP reserves.
Ripple could be moving toward a new business model that aligns more closely with functioning as an XRP treasury company. This suggestion came from Bitwise CEO Hunter Horsley, who indicated that Ripple’s role in the digital asset space might significantly change within the next 12 months.
The Ripple holding now has 4.56 billion XRP. Also, a rising number of about 37 billion XRP is kept in escrow, which is controlled by so-called on-ledger smart contracts. Such contracts automatically free up tokens on a monthly basis so that Ripple does not have a direct access to it but still has significant control.
Ripple had an arm of XRP supply.
The total supply of XRP is partially owned by Ripple, where the direct and escrow-controlled assets number approximately 42 percent. Such levers of control reflect great interest of the company in the ecosystem and lead to speculation on the transition to a treasury-based business.
Several public companies are actively investing in XRP treasuries. Trident Digital Tech Holdings plans to raise $500 million in XRP. Webus International has similar plans for $300 million. Meanwhile, VivoPower International and Wellgistics Health secured $121 million and $50 million, respectively, to grow their XRP holdings.
Outdated Valuation vs. Real XRP Holdings
Ripple CEO Brad Garlinghouse recently noted that the company’s $11 billion valuation is no longer accurate. He referenced the company’s vast XRP assets, which reportedly amount to nearly $100 billion when including tokens in escrow. This discrepancy highlights the increasing importance of Ripple’s XRP reserves in evaluating its overall financial position.
Ripple has traditionally been identified as a payments-focused entity. However, the rising trend of companies adopting cryptocurrencies as reserve assets suggests Ripple could reposition itself. The accumulation of XRP and increasing market recognition of crypto treasury models support the idea of a strategic transition.
The use of XRP as a treasury reserve asset appears to be gaining traction. Ripple’s large XRP holdings, combined with new corporate treasury interest, suggest the company may adapt its strategy to better reflect its asset-heavy position.
