A significant development is taking place in the world of cryptocurrency, as Webus, a prominent Chinese firm, has announced its ambition to create a substantial $300 million XRP treasury. This strategic move aims to solidify its position within the rapidly evolving digital asset landscape.
Webus Initiates XRP Treasury Initiative with SEC Filing
In a formal declaration, Webus has submitted a Form 6-K to the U.S. Securities and Exchange Commission (SEC), marking the groundwork for its XRP-focused treasury. The company articulated a partnership with Samara Alpha, designed to forge a comprehensive strategy for future digital asset management.
Moreover, Webus has expressed interest in leveraging a financial framework that will support this treasury initiative. The company is looking into various funding sources, including its existing cash reserves, bank lending channels, and institutional credit options, to secure the necessary capital.
With plans centered on XRP blockchain integration, Webus aims to transform the global payment ecosystem, enhancing workflows for both its business partners and travelers internationally. This venture may set a precedent in the industry.
In parallel, another notable player in the market, Nasdaq-listed VivoPower, is also looking into establishing its own XRP treasury. Reports indicate that VivoPower has arranged $121 million to pursue its strategic DeFi initiatives, positioning itself to be a key participant in this burgeoning sector.
The company is collaborating with BitGo to facilitate a significant acquisition of $100 million in XRP tokens, utilizing their exclusive over-the-counter (OTC) trading services. This partnership aims to streamline VivoPower’s XRP transactions via BitGo’s efficient trading and custody solutions.
Increasing Likelihood of an XRP ETF
As the digital asset landscape evolves, the likelihood of an XRP ETF being approved this year is rising significantly. According to data from Polymarket, there’s a remarkable 92% chance that the SEC will greenlight the ETF before the year’s end.
However, predictions suggest that a decision may not come until later in the year, with only an 18% likelihood of approval before July 31. The introduction of XRP ETFs could potentially accelerate institutional investment, positively impacting XRP’s market valuation.
Market analysts such as BarriC have speculated that post-approval, XRP prices could surge dramatically, predicting a potential rise to between $10 and $20. Multiple firms, including Grayscale and Wisdomtree, have already submitted applications for an XRP ETF, signaling strong institutional interest.
Currently, XRP is valued at approximately $2.18, reflecting a minor decline of over 2.14% in the past 24 hours, as reported by CoinMarketCap.
