Ripple is establishing a digital treasury with 1 billion dollars in XRP.

Ripple Labs, despite the fragilities in the crypto markets, plans to establish a new digital asset treasury for XRP with a goal of raising 1 billion dollars. The company is taking a bold step in the uncertain market environment by creating this treasury, named Digital Asset Treasury. According to a report by Bloomberg, the funds will be raised through a special purpose vehicle, and Ripple will also contribute its own XRP assets to this treasury.

Ripple’s new initiative reflects its goal of institutional-scale digital asset management. Recently, the company acquired a corporate treasury software company named GTreasury for 1 billion dollars, aiming to open a new area in the world of cryptocurrencies with tokenized assets and stablecoin solutions.

The XRP-focused digital treasury that Ripple intends to establish will adopt a structure similar to publicly traded crypto accumulation companies like Strategy Inc., previously managed by Michael Saylor, and Japan-based Metaplanet. These companies collect large amounts of cryptocurrencies such as Bitcoin and hold them in their balance sheets. Ripple’s initiative could implement a similar strategy for XRP. Currently, it is known that Ripple holds approximately 4.7 billion XRP and that an additional 35.9 billion XRP is locked in a gradually releasing escrow mechanism. The new treasury structure aims to manage this supply more effectively and strengthen price stability.

The timing of this announcement is noteworthy. Following the 19 billion dollars liquidation wave after the US-China trade tensions, an "extreme fear" atmosphere prevails in the crypto markets, and Ripple’s announcement of such a fund is interpreted as a message of "long-term confidence" in the market. Following the news, the price of XRP fell by 3.3 percent, dropping to 2.35 dollars. Investors believe that Ripple’s initiative could usher in a new institutional era within the XRP ecosystem.