In the context of the rapidly changing cryptocurrency market, Ripple – a company long known for its pioneering role in cross-border payments – is gradually shifting towards a completely new direction. According to Hunter Horsley, CEO of Bitwise, Ripple may soon be known as an 'XRP treasury company' within the next 12 months.

Massive XRP Holdings – Ripple's New Strategic Resource

Currently, Ripple directly holds 4.56 billion XRP. Additionally, the company indirectly controls about 37 billion XRP through smart contracts locked in the escrow system on the blockchain. These amounts of XRP were not created by Ripple and are not actively controlled, but will be released automatically each month according to a predetermined schedule on-chain.

In total, Ripple currently controls about 42% of the total supply of XRP – an extremely large and controversial figure in the cryptocurrency community. Some argue that, with such a level of ownership, Ripple is no longer just a payment solution provider but is on its way to becoming a critical financial entity – a 'treasury' of the XRP ecosystem.

Ripple Valuation and Financial Potential from XRP

Brad Garlinghouse, CEO of Ripple, has acknowledged that the $11 billion valuation for the company is no longer appropriate. Instead, he believes that the true value of Ripple should be calculated based on the amount of XRP the company holds – estimated at around $100 billion, a figure that more accurately reflects the financial strength that Ripple possesses.

This further highlights the growing role of Ripple as a digital asset management company, especially in the context of more and more public companies viewing XRP as a strategic asset for capital storage.

The Wave of Companies Racing to Build XRP Treasuries

A new trend is emerging: many public companies are actively raising capital to build treasuries with XRP.

  • Trident Digital Tech Holdings has announced plans to raise up to $500 million using XRP.

  • Webus International is expected to establish a treasury worth $300 million.

  • Companies like VivoPower International and Wellgistics Health have also raised 121 million XRP and 50 million XRP, respectively, to supplement their capital.

Notably, Ripple's escrow contracts allow for periodic releases of XRP, providing the predictability and stability needed for financial planners – something very rare in the volatile world of cryptocurrency.

Ripple – From Fintech Company to New Financial Institution?

If the trend of hoarding XRP as a strategic asset continues to rise, Ripple could completely change its nature of operations. No longer just a fintech company providing global payment solutions, Ripple may become a financial center playing a key role in coordinating global XRP capital flows.

Hunter Horsley remarks that this shift is not just a temporary trend, but could be a long-term strategic shift reshaping Ripple's position in the blockchain industry.

Conclusion

With a massive amount of XRP and a wave of interest from public companies, Ripple is on the brink of a strategic transformation. If this trend continues, Ripple will not only be the 'patron' of XRP but could become the leading treasury hub of the entire ecosystem.