Ripple, the payments-focused blockchain firm closely related to the XRP Ledger (XRP), is taking its U.S. dollar-backed stablecoin Ripple USD (RLUSD) to Ethereum layer-2 (L2) blockchains including Optimism, Coinbase's Base, Kraken's Ink and Uniswap's Unichain in a push to embed the $1.3 billion token deeper into the multichain ecosystem. The company, announcing the move Monday, said it is starting with a test phase ahead of a wider rollout expected next year, pending regulatory approval by the New York De ...

Key Points Both PayPal USD and Ripple USD now rank among the top 10 stablecoins by market cap. Since stablecoins always trade for a price of $1, it's important to evaluate them in terms of overall utility. Given the size and scale of the PayPal ecosystem, PayPal USD could see an expanding set of potential use cases. 10 stocks we like better than PayPal USD › There are two up-and-coming stablecoins that are starting to make some noise right now within the $250 billion stablecoin industry: PayPal U ...

Group 1 - Stablecoins are considered safer alternatives to volatile cryptocurrencies, typically pegged to fiat currencies like the U.S. dollar, allowing for faster and cheaper cross-border transfers [1][2] - They can earn higher yields than traditional savings accounts and are used for payments on decentralized applications across various blockchains [2] - The largest stablecoins are pegged to the U.S. dollar but differ in backing assets and ecosystem integration [3] Group 2 - Tether is the most valuable stablecoin with a market cap of $183.5 billion, launched in 2014, and is widely accepted across multiple blockchains [4] - Ripple USD, with a market cap of $1 billion, ranks ninth among stablecoins and was launched in 2024, primarily used within Ripple's payment platform [5] - Tether is more broadly utilized on DeFi platforms compared to Ripple USD, which is mainly used for money transfers within its own ecosystem [6] Group 3 - Ripple USD serves as a "bridge currency" for fiat transfers, simplifying the conversion process between different fiat currencies [7] - Tether is widely used across major blockchains, while Ripple USD operates mainly within its own blockchain, making Tether a safer investment option [8]

Core Insights - Ripple has secured a $500 million strategic investment at a $40 billion valuation, indicating strong institutional confidence in its expansion plans beyond payments into custody, stablecoins, prime brokerage, and treasury management [1][2] Investment and Valuation - The investment was led by prominent funds including Fortress Investment Group, Citadel Securities, Pantera Capital, Galaxy Digital, Brevan Howard, and Marshall Wace [1] - This follows Ripple's earlier $1 billion tender offer, reinforcing the positive outlook from institutional investors [1] Business Growth and Strategy - CEO Brad Garlinghouse emphasized that this investment validates the market opportunity Ripple is pursuing as it aims to become a full-service partner for institutions utilizing crypto and blockchain [2] - Ripple has repurchased over 25% of its shares in recent years to enhance liquidity for shareholders and employees [3] Market Activity and Product Development - The Ripple Payments platform, utilizing XRP and Ripple USD, has processed over $95 billion in transaction volume [3] - Recent acquisitions, including stablecoin infrastructure firm Rail and prime brokerage platform Hidden Road (now Ripple Prime), demonstrate Ripple's commitment to scaling real-world utility [4] - The market cap of RLUSD has surpassed $1 billion, with increasing institutional adoption of XRP-based products [4]

Core Insights - Ripple has announced a $500 million strategic investment round at a $40 billion valuation, led by Fortress Investment Group and Citadel Securities, with participation from other notable investors, indicating strong investor confidence in the company's growth trajectory [1] Institutional Confidence and Record Valuation - The recent investment follows a $1 billion tender offer completed earlier this year at the same valuation, highlighting robust institutional demand for Ripple's equity [2] Share Repurchase and Institutional Network - Over recent years, Ripple has repurchased more than 25% of its outstanding shares, enhancing liquidity for shareholders and attracting new strategic partners, demonstrating the company's intent to strengthen its institutional network globally [3] Company Momentum and Market Opportunity - Ripple's CEO, Brad Garlinghouse, emphasized that the investment reflects the company's momentum and validates the market opportunities being pursued, noting the expansion from payments to custody, stablecoins, prime brokerage, and corporate treasury [4] Expansion Through Acquisitions and Product Development - Ripple has completed six acquisitions in just over two years, including two valued at over $1 billion, which broadens its footprint across payments, custody, and stablecoins [5] Key Infrastructure Development - The acquisition of Rail, a stablecoin infrastructure provider, has become essential for Ripple Payments, creating an efficient on-and-off ramp for global businesses seeking faster, lower-cost international transactions [6] Regulatory Licenses and Adoption - Ripple now holds 75 regulatory licenses, enabling it to facilitate money movement for clients and streamline liquidity management, with total Ripple Payments volumes exceeding $95 billion, indicating accelerating adoption among enterprise clients [7] Stablecoin and Treasury Development - Following the GENIUS Act, institutions are increasingly adopting Ripple's RLUSD stablecoin for treasury payments and collateral use, with the acquisition of GTreasury enhancing capabilities in corporate cash management for Fortune 500 clients [8]

Group 1 - Ripple has raised $500 million in a strategic investment, valuing the company at $40 billion, led by Fortress Investment Group and Citadel Securities [1] - This investment follows Ripple's earlier $1 billion tender offer at the same valuation [1] - The fresh capital will help Ripple deepen relationships with financial institutions and support its expanding product suite, which includes custody, stablecoins, prime brokerage, and corporate treasury services [3] Group 2 - The GENIUS Act has created a regulatory framework for stablecoins, leading to increased adoption of stablecoins like Ripple USD (RLUSD) for treasury payments and collateral management [2] - Fintechs and traditional financial firms are increasingly using stablecoins to streamline cross-border payments, speed up settlements, and broaden access to digital finance [2] - Ripple aims to expand institutional use of its XRP token and deepen its footprint in capital markets under a more crypto-friendly regulatory environment [3][4]

Core Insights - Ripple USD (RLUSD) has surpassed $1 billion in market capitalization within less than a year of its launch in December 2024, making it the 10th largest U.S. dollar-backed stablecoin by market cap [1][2] - The token is backed by dollar reserves and short-term U.S. Treasuries, and is designed for integration into Ripple's broader payments and liquidity infrastructure [2] - RLUSD's rapid growth indicates strong early demand, leveraging Ripple's existing customer base and global financial network [4] Market Position - RLUSD's market cap is significantly smaller compared to Tether's USDT at $183 billion and Circle's USDC at $76 billion, but its rise reflects a growing interest in the stablecoin [3] - The circulating supply of RLUSD is currently $819 million on the Ethereum blockchain and $203 million on the XRP Ledger network [3] Adoption and Demand - Ripple has seen a rise in demand for its payment services, processing nearly $100 billion in payment volume to date, with RLUSD being the primary stablecoin used for these payment flows [5] - The company has doubled its customer base over the year and now holds over 75 global licenses [5] Acquisition Strategy - Ripple has been active in acquisitions, purchasing four companies this year to enhance its digital assets offerings for institutions and enterprises [6] - The acquisitions include Hidden Road for $1.25 billion and Rail for $200 million, with ongoing efforts to acquire GTreasury and Palisade [6][7] - The acquisition strategy focuses on targets that either accelerate existing offerings or expand into new verticals [7]

Core Insights - Evernorth Holdings Inc. has announced its public launch and a business combination agreement with Armada Acquisition Corp II, aiming to create the largest public XRP treasury company [1][8] - The transaction is expected to raise over $1 billion in gross proceeds, with significant investments from SBI, Ripple, and other leading digital asset investors [2][4] - Evernorth is designed to provide investors with liquid and transparent exposure to XRP, focusing on active treasury growth through institutional lending and DeFi yield opportunities [3][4] Financial Overview - The transaction will generate over $1 billion in gross proceeds, including $200 million from SBI and additional investments from Ripple and other notable investors [2] - Net proceeds will primarily fund open-market purchases of XRP, with allocations for working capital and transaction expenses [2] Business Model - Evernorth aims to grow XRP per share over time, differentiating itself from passive ETFs by engaging in institutional lending and DeFi yield strategies [3][4] - The company plans to accumulate XRP as a reserve asset while acting as a catalyst for the broader adoption of the XRP Ledger [9] Leadership and Governance - The leadership team includes CEO Asheesh Birla, who has extensive experience in digital assets and global payments, previously serving at Ripple [5][6] - Evernorth maintains independent governance, with Ripple as a strategic investor and Ripple executives expected to serve as advisors [7] Strategic Vision - Evernorth's strategy is aligned with Ripple's mission to enhance XRP's utility in global payments, aiming to increase participation and confidence in the XRP ecosystem [8] - The company plans to leverage existing traditional finance yield generation strategies while contributing to the growth of the DeFi ecosystem [5][18]

Group 1: XRP Price Movement - XRP has shown renewed strength, climbing over 4% in the past 24 hours to trade near $2.38, rebounding from a low of $2.25 on October 17, which was its weakest price level since early July [1] - The recovery of XRP coincides with a significant increase in mid- to large-sized holders, with the number of wallets holding at least 10,000 XRP reaching an all-time high of approximately 317,500, indicating accumulation rather than exit by investors [2] - Each price correction of XRP has historically been followed by renewed buying pressure, reflecting growing confidence in Ripple's ecosystem and long-term roadmap [3] Group 2: Market Dynamics - Open interest in XRP futures has sharply declined to $3.49 billion, the lowest level since June, indicating reduced speculative activity and a shift towards more defensive investor behavior [4] - The decline in open interest often coincides with market bottoms, suggesting that selling exhaustion may lead to recovery phases [5] Group 3: Ripple's Corporate Strategy - Ripple is reportedly preparing a $1 billion Digital Asset Treasury (DAT) company to manage and accumulate XRP as part of its long-term reserves, which may be fueling market optimism [7] - Over the past two years, Ripple has spent approximately $3 billion on acquisitions of major firms, including Metaco, Hidden Road, Rail, and GTreasury, aiming to build an integrated corporate finance stack for XRP and its Ripple USD (RLUSD) stablecoin [8]

Core Insights - Ripple has formed a strategic partnership with Absa Bank to provide digital asset custody services for institutional clients, marking its first major custody partnership in Africa [1][3][9] Group 1: Partnership Details - The agreement allows Absa to integrate Ripple's institutional-grade digital asset custody technology, enabling secure and scalable storage solutions for tokenized assets, including cryptocurrencies [4][9] - This partnership is in response to the rising demand for compliant digital asset infrastructure in emerging markets and the growing regulatory clarity around alternative investments in Africa [4][6] Group 2: Market Context - Africa is undergoing a significant transformation in value storage and exchange, highlighting the potential of digital assets on the continent [5] - Ripple's global custody network now includes regions such as Europe, the Middle East, Asia-Pacific, Latin America, and Africa, supporting financial institutions in adopting tokenization and blockchain-based finance [5][6] Group 3: Regulatory and Compliance Standards - Ripple's custody infrastructure adheres to strict operational, security, and regulatory standards, enabling institutions like Absa to safely enter the digital asset space while ensuring compliance [6][7] - Ripple holds over 60 regulatory licenses and registrations worldwide, positioning itself as a key provider of compliant digital asset infrastructure for banks and payment firms globally [7]