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4h ago

Wall Street Backed Ripple’s $500 Million Raise With Credit-Style Safeguards

Investors obtained buyback rights with guaranteed returns plus liquidation priority after assessing Ripple as heavily dependent on XRP.

Ripple’s $500 million raise shows Wall Street caution with its XRP-heavy holding
Wall street saw ripple as 90% xrp — offered $500m, but with safety net: bloomberg
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Report: ripple funding round offered investors protection against xrp volatility

Overview

  • Bloomberg detailed terms giving investors the right to sell shares back to Ripple after three or four years at roughly a 10% annualized return unless an IPO occurs.
  • If Ripple initiates an earlier repurchase, investors receive a 25% annualized return, and the new money carries a liquidation preference over legacy shareholders.
  • The November round valued Ripple at $40 billion and included Citadel Securities, Fortress, Marshall Wace, Brevan Howard–linked vehicles, Galaxy Digital and Pantera.
  • Several funds judged about 90% of Ripple’s net value as tied to its XRP treasury, reported at $124 billion in July, with XRP down roughly 40% from its mid‑July peak.
  • Estimates peg potential repurchase outlays at about $732 million after four years, while Ripple pursues diversification via acquisitions such as Hidden Road and GTreasury and reiterates no immediate IPO plan.