Ripple has raised $500 million in new funding, valuing the firm at a valuation of $40 billion

Ripple raised $500 million in new funding at $40 billion valuation, representing more than 3 times the previous valuation of $11.3 billion. The funds will support Ripple’s expansion into custody, stablecoins, prime brokerage, and treasury services. 

Fortress Investment Group and Citadel Securities led the funding round. Pantera Capital, Galaxy Digital, Brevan Howard, and Marshall Wace also participated in the funding round. Ripple confirmed that it accepted the funding despite having a strong balance sheet to support its expanding role in the digital asset space. 

Ripple plans to use the funds in stablecoin expansion and treasury solutions

Despite payments being the firm’s core business, Ripple has expanded into new digital finance markets, including stablecoins, prime brokerage, corporate treasury management, and digital asset custody. 

Ripple’s expansion has been supported by the shifting regulatory landscape in the U.S. under pro-crypto policies supported by President Donald Trump. The GENIUS Act supported the growth of the stablecoin market, with Ripple’s own stablecoin, RLUSD, launched last year, climbing to the top 10 in the U.S. Based on on-chain data, RLUSD has an approximately $1.02 billion market cap, standing as the 11th best stablecoin by market cap. 

Monica Long, Ripple’s President, said in an interview with CNBC that the company did not need to raise money but saw a strong interest from investors who are interested in helping shape the future of blockchain-based finance. 

The blockchain-based payment provider has made several acquisitions this year to support its growth agenda, including the purchase of the non-bank prime broker Hidden Road for $1.25 billion. The firm also purchased the enterprise treasury platform, GTreasury, for a $1 billion deal. The payment provider also made six other acquisitions in the past two years, which align with the firm’s strategy to extend its technology stack and serve institutional needs beyond just payments. 

According to Brad Garlinghouse, Ripple’s CEO, the funding round showed confidence in the firm’s business model and also acknowledged the potential opportunities across the blockchain networks. Garlinghouse believes the investment is a reflection of both Ripple’s growth momentum and the validation of market opportunities it is pursuing.

XRP climbs over 5% today after the announcement

The cross-border payment provider will use the new capital to accelerate the rollout of custody solutions, stablecoin integrations, and prime crypto brokerage offerings. The firm has also partnered with traditional financial institutions, such as Mastercard, WebBank, and Gemini, to pilot a stablecoin-based settlement for card transactions using RLUSD. 

Ripple has processed over $95 billion in transactions to date on its blockchain-based global payment network. XRP, the native token of the XRP Ledger blockchain, has also seen a resurgence in investor confidence recently, surging to a new all-time high of $3.65. The XRP Ledger blockchain surged following rumors of a potential U.S. spot ETF application. 

XRP has surged today over 5% following the announcement, trading at $2.29, representing a 5.6% growth at the time of publication. The token now has roughly $130 billion. Despite today’s growth, the token has lost approximately 24% of its value over the past 30 days. 

The latest funding marked the most substantial funding since the 2019 Series C round, which saw them raise roughly $200 million, and the most recent $1 billion stock buyback strategy aimed at consolidating ownership of the firm and offering liquidity to early investors. The firm’s turnaround follows recent relief, as the Securities and Exchange Commission dismissed its pending case last month over the alleged sale of unregistered securities. 

So far, Ripple has confirmed that it remains privately held with no immediate plans for an IPO.

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