A Nasdaq-listed company has revealed plans to purchase $121 million worth of XRP tokens, potentially positioning the digital asset as a treasury reserve. This institutional endorsement follows similar strategies previously seen with Bitcoin.
XRP climbed nearly 3% on Tuesday, breaking back above the $2.25 mark. The price movement reflects growing interest from corporations and investment funds.
VivoPower’s Strategic XRP Treasury Initiative
VivoPower International, a company listed on Nasdaq, announced its intention to adopt XRP as a primary treasury asset. The firm successfully raised $121 million from strategic investors, including members of the Saudi Royal Family and Adam Traidman, former Ripple board member and CEO of SBI Ripple Asia.
With Traidman joining as Chairman of the Board, VivoPower aims to transition into a digital asset enterprise centered around XRP. The company plans to develop decentralized finance (DeFi) strategies, reduce debt, and optimize working capital using XRP.
This move mirrors corporate Bitcoin strategies adopted by firms like MicroStrategy and Japan’s Metaplanet but is notably the first to focus exclusively on XRP.
Webus Partnership and Broader Institutional Interest
Shortly after VivoPower’s announcement, Chinese mobility startup Webus revealed a partnership with fund manager Samara Alpha to establish a $300 million XRP treasury reserve. According to the official release, Webus will add XRP to its corporate treasury once operational and funding requirements are met.
These developments highlight a growing trend among institutions to diversify treasury holdings beyond traditional assets and even beyond Bitcoin.
XRP Price Reaction and Market Sentiment
XRP’s price saw a noticeable uptick following the news, continuing a four-day positive streak. However, the market response has been mixed among derivatives traders.
Data from Coinglass indicates that traders with long positions have faced significantly higher liquidations compared to those with short positions. On May 30 alone, over $30 million in long positions were liquidated, while short liquidations amounted to just $586,000.
This suggests that despite positive news, market participants remain cautious about XRP’s short-term price direction.
Key Catalysts Influencing XRP’s Performance
Several factors are currently shaping XRP’s market dynamics:
Ongoing SEC vs. Ripple Lawsuit
The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) remains a critical influence. A new court filing dated May 28 from Justin W. Keener, an individual previously charged by the SEC, introduced what he termed "decisive evidence" concerning the Howey Test and the definition of an investment contract.
Pro-crypto lawyer Bill Morgan criticized the filing as a "multi-page rant," downplaying its likely impact. Legal experts anticipate a status report from both parties by June 16.
Ripple’s Chief Legal Officer Stuart Alderoty and legal counsel Samir Dunde have also submitted additional letters to the SEC’s crypto task force, addressing fundamental questions about digital assets and investment contracts.
Decline in XRPLedger Activity
Data from XRPScan shows a significant drop in the number of transactions on the XRPLedger, the decentralized blockchain native to XRP. Transaction counts have fallen to levels last observed in October 2024, indicating reduced on-chain activity.
This decline, coupled with a reported $28 million outflow from XRP-focused investment funds in a single week, adds to near-term bearish sentiment.
Expert Insights: XRP as a Treasury Asset
James Toledano, COO of Unity Wallet, shared exclusive insights with FXStreet on this unusual corporate move:
"Bitcoin has been the default choice for companies exploring crypto as a treasury asset due to its broad recognition and established role as a store of value. Adopting XRP signals that firms are seeking alternative ways to consolidate finances outside decentralized systems—a win for DeFi broadly."
Toledano suggested that VivoPower’s strategy could validate XRP’s institutional appeal, especially during the SEC’s review of spot XRP ETF applications.
Ryan Lee, Chief Analyst at Bitget Research, noted a surge in speculative activity:
"XRP’s open interest has soared to nearly $5 billion, indicating large positions taken by traders in anticipation of a decisive price move. While this points to underlying momentum, the direction remains uncertain without a clear catalyst."
Lee advised traders to monitor external developments, including XRPL progress or ETF-related updates, which could trigger significant volatility.
Frequently Asked Questions
What does VivoPower’s investment mean for XRP?
VivoPower’s plan to buy $121 million in XRP signals growing institutional confidence. It could encourage other firms to consider XRP for treasury diversification, potentially increasing demand and stabilizing its long-term value.
How does the SEC lawsuit affect XRP’s price?
The ongoing case creates regulatory uncertainty, which often leads to price volatility. Positive outcomes could boost investor confidence, while negative rulings may dampen momentum.
Is XRP a good store of value like Bitcoin?
XRP is primarily designed for fast cross-border payments rather than as a store of value. However, corporate adoption could enhance its perceived stability and utility in the digital economy.
What are the risks of using XRP as a treasury asset?
Risks include regulatory challenges, market volatility, and technological vulnerabilities. Companies should assess their risk tolerance and seek expert advice before allocating funds to crypto assets.
Can XRP be used in DeFi applications?
Yes, XRP can be integrated into DeFi protocols for lending, borrowing, and liquidity provision, especially within the XRPL ecosystem and on supported cross-chain platforms.
Where can I learn more about institutional crypto strategies?
For those interested in exploring institutional-grade tools and frameworks, view real-time analytics and insights available on leading platforms.
This article is for informational purposes only. Readers should conduct their own research and consult a financial advisor before making investment decisions. Trading cryptocurrencies involves risk, including potential loss of capital.