Core Insights - Ripple's recent $500 million share sale attracted major financial institutions, but investors required significant downside protections, indicating a shift towards structured credit-like arrangements in venture funding [1][4]. Group 1: Investment Details - The funding round valued Ripple at $40 billion, marking the highest valuation for a privately held crypto company [2]. - Notable participants included Citadel Securities, Fortress Investment Group, Marshall Wace, Brevan Howard-linked vehicles, Galaxy Digital, and Pantera Capital [2]. Group 2: Asset Exposure - Investors assessed that over 90% of Ripple's net asset value was linked to XRP, the token that is legally distinct from the company [3]. - As of July, Ripple held $124 billion worth of XRP in its treasury at market prices [3]. Group 3: Investor Protections - Investors negotiated strong protections, including the right to sell shares back to Ripple after three or four years with a guaranteed 10% annualized return, a 25% annualized return if Ripple enforces a buyback, and a liquidation preference over legacy shareholders [4]. - These terms create a synthetic floor for investors' capital, reflecting a growing trend in traditional finance adapting to the volatility of crypto markets [5]. Group 4: Market Trends - XRP has experienced a decline of approximately 40% from its mid-July peak amid a broader downturn in the crypto market [5]. - U.S. spot XRP ETFs are nearing $1 billion in inflows, benefiting from the resolution of Ripple's court case with the SEC, which clarified XRP's regulatory status [6].