Ripple Labs has successfully completed a strategic investment round, raising $500 million at a market valuation of $40 billion. The round was led by Fortress Investment Group and Citadel Securities, with other investors including Galaxy Digital, Pantera Capital, Brevan Howard, and Marshall Wace.
This is reported by Business • Media
Ripple Expands Collaboration in the Institutional Market
This investment round occurred immediately after Ripple’s tender offer of $1 billion at a similar valuation. According to company representatives, the capital raised has been described as the “final chord of the year” and the most successful financial result in its history.
Ripple’s CEO Brad Garlinghouse emphasized that the company has evolved from a provider of international payment solutions into a multifunctional platform. Ripple now encompasses custodial services, stablecoin issuance, and corporate treasury solutions based on the XRP token.
“Today we announced a $500 million investment in Ripple from Fortress Investment Group and Citadel Securities — this announcement feels like the cherry on top of a mountain of good news.”
Strengthening Positions After Settlement with the SEC
Ripple highlighted that the funds raised will enable the company to enhance collaboration with traditional financial institutions. The firm plans to expand its range of institutional products, including the Ripple USD stablecoin (RLUSD), as well as brokerage and treasury services.
The investment round became possible after resolving a prolonged conflict with the U.S. Securities and Exchange Commission. Over the past two years, Ripple has directed more than $4 billion towards strategic investments and acquisitions, including Hidden Road, GTreasury, and the recently acquired custodian Palisade. Additionally, the company has repurchased over 25% of its own shares, which has helped support liquidity. The new round also brought fresh institutional capital from Wall Street to the market.
According to Ripple, the Ripple Payments service has processed over $95 billion in transactions using XRP and RLUSD. Ripple Prime, a subsidiary broker that emerged after the acquisition of Hidden Road, offers institutional XRP products and collateralized lending, with client activity tripling.
Through the integration of GTreasury for $1 billion, the company gained access to Fortune 500 corporate clients working with blockchain liquidity and stablecoin settlements. Ripple notes that following the passage of the GENIUS Act, interest from financial institutions in assets like RLUSD is increasing for treasury and collateral purposes.
It was previously reported that Ripple Labs co-founder Chris Larsen earned over $764 million in profit from the sale of XRP tokens over seven years.