The Web3 company Trident Digital announced plans to set up a 500 million USD XRP reserve fund, despite reporting losses and negative market reactions.
Trident Digital Tech Holdings, a Web3 technology company based in Singapore, has just announced an ambitious plan to establish an XRP reserve fund of up to 500 million USD. This project is expected to be implemented in the second half of 2025, through stock issuance and other financial instruments, depending on market conditions and the regulatory environment.
According to Soon Huat Lim, the founder and CEO of Trident Digital, this move represents a 'strong belief in the transformative potential of blockchain technology', while reflecting the efforts of public companies to cautiously and responsibly approach decentralized finance (DeFi).
However, the announcement of this plan comes amid the company's difficult business results, leading to doubts about the feasibility and sustainability of the strategy. Immediately after the information was released, Trident Digital's stock recorded a significant drop of up to 37.6%.
The financial report at the end of December 2024 shows that the company suffered a net loss of 3.1 million USD, revenue decreased by up to 91.4%, while operating expenses surged by 101.3% compared to the same period last year.
The strategy of using the XRP reserve fund to generate yield through staking and actively participating in the Ripple ecosystem is considered relatively complex, requiring significant financial stability and operational capability, factors that Trident Digital is currently noticeably lacking.
This move by Trident Digital is not an isolated case, but part of a broader market trend as many other companies are also boldly betting on XRP. Notable recent examples include the Chinese AI technology company Webus (300 million USD), VivoPower (100 million USD), and Wellgistics Health (50 million USD).
The growing interest in XRP reflects the new role of this digital asset, gradually being seen as a potential strategic reserve asset in corporate treasury, a position traditionally reserved for safe traditional assets.
The trend of accumulating digital assets was initiated in August 2020 by Strategy (formerly MicroStrategy) by purchasing Bitcoin as the main reserve asset. Since then, more and more companies like Metaplanet and Semler Scientific have followed this path.
In 2025, the rise of Solana also made a significant mark as companies like DeFi Development and SOL Strategies continuously increased their holdings of SOL, demonstrating a trend of increasingly diverse and extensive digital asset allocation by businesses.
