Ripple appears to be preparing one of its most ambitious experiments via a $1 billion digital asset treasury (DAT) designed to accumulate and manage XRP as a long-term reserve.
According to one Bloomberg reportthe initiative would be financed through a Special Purpose Acquisition Company (SPAC). This structure is often used in traditional financing to raise capital through an initial public offering and later merge with a target company.
In this case, the shell would become a treasury vehicle that steadily purchases XRP, essentially creating a permanent buyer for the token.
Meanwhile, Ripple will reportedly contribute a portion of its 4.7 billion liquid XRP holdings (worth nearly $11 billion), bringing immediate liquidity to the project and signaling industry confidence in its ecosystem.
Ripple’s relationship with XRP
Ripple and XRP are related but separate entities that are often confused with each other.
Ripple is a private crypto company that develops global payment solutions that rely on digital assets such as XRP and Ripple USD (RLUSD) for their processes.
Notably, the company is also the largest holder of the XRP token, controlling approximately 42% of the total supply of 100 billion.
Ripple has 35 billion XRP tokens in custody and is releasing a billion monthly on an on-ledger schedule. About 60% of these monthly releases are typically relocked, creating a self-imposed limit that stabilizes issuance and maintains market confidence.
Meanwhile, a DAT would flip the script from supply constraint to demand creation.
Rather than moderating the outflows, Ripple would indirectly moderate the inflows as institutional capital flows to an entity that has the mandate to purchase XRP. This would mean a structural shift from emissions control to market absorption.
XRP treasury companies
The idea of an XRP-focused company is not entirely new. The crypto industry has seen different versions of this for various digital assets, including Bitcoin.
Over the past year, a handful of companies have already experimented with XRP-focused reserves, with varying levels of success.
Notably, Singapore’s Trident Digital announced a $500 million fund in June, while Webus International sought $300 million in May to support its driver payments network.
Additionally, VivoPower International and Wellgistics followed with smaller allocations of $121 million and $50 million, respectively.
However, their stock performance has been sobering.
Since their announcements, these companies have seen their shares fall by as much as 70%, highlighting how digital asset government bonds can increase hype and risk.
Still, some, like Webus and Wellgistics, are doubling down on the XRP ecosystem to grow. For them, XRP treasuries are not short-term transactions but infrastructure bets, but capital pools to support cross-border liquidity and payment rails for enterprises.
Nevertheless, Ripple’s proposed DAT would eclipse them all.
At current prices around $2.30, a $1 billion reserve equates to about 435 million XRP, or roughly 0.75% of the 60 billion in circulation, according to CoinGecko data.
How does this affect the XRP price?
The stable bid of an XRP treasury will help strengthen price floors and institutional confidence in the digital asset.
Facts from CoinMarketCap shows that XRP’s liquidity on major exchanges is significantly thinner than that of competing tokens such as Solana and Ethereum.
Across the ten largest spot venues, including Binance, Coinbase, Bybit, and Upbit, the combined order book of ±2 percent is only about $51 million.
At that level, Ripple’s proposed $1 billion digital asset treasury, if deployed evenly over 90 days for approximately $11 million in daily purchases, would represent more than 20% of all visible near-price liquidity on any given day.
Furthermore, this would equate to roughly twenty times the total depth within that immediate trading band. Such a concentration suggests that the market could react much more sharply to continued buying activity from the DAT company.
Based on Crypto Slates analyzing the current depth of exchange rates and historical price elasticities, even moderate execution could meaningfully shift valuations in the near term.
| Implementation pace | Proportion of the visible depth that is absorbed | Modeled short-term impact* | Indicative move (from $2.30) |
|---|---|---|---|
| Slow (180 days) | ≈ 10% | +2 – 3% | $2.35 |
| Moderate (90 days) | ≈ 20% | +6 – 8% | $2.45 – $2.48 |
| Fast (45 days) | ≈ 40% + | +12 – 15% | $2.55 – $2.65 |
While such accumulation would almost certainly involve OTC and algorithmic execution to reduce visible slippage, the concentration of liquidity implies that even careful deployment could produce a temporary price increase of 8 to 15% before markets adjust.
However, these gains would likely disappear if government bonds halt their purchases or if secondary holders are sold to gain strength.
