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Ripple’s $1 Billion XRP Treasury Unleashed - Here’s How It Reshapes the Token’s Future

Ripple’s $1 Billion XRP Treasury Unleashed - Here’s How It Reshapes the Token’s Future

Published:
2025-10-17 17:00:24
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Ripple just deployed its billion-dollar war chest - and the entire crypto market is watching.

The Strategic Gambit

That massive $1 billion treasury isn't sitting idle. Ripple's deploying capital like a tech giant on steroids - funding development, partnerships, and ecosystem growth while traditional finance still debates whether crypto is 'real.'

XRP's Transformation Engine

This isn't just another corporate treasury. We're talking about systematic token utility enhancement, developer incentives that actually make sense, and infrastructure investments that could finally bridge the gap between blockchain promises and real-world usage.

The Liquidity Factor

Market makers are getting fresh ammunition, institutional partners are seeing serious skin in the game, and suddenly XRP's trading volumes look like they've been hitting the gym. Because nothing says commitment like putting a billion dollars where your mouth is.

Regulatory Chess Match

While regulators chase yesterday's problems, Ripple's building tomorrow's infrastructure - with enough financial firepower to make even the most skeptical banker raise an eyebrow. Because in crypto, sometimes the best defense is a well-funded offense.

So while Wall Street analysts debate whether this is genius or madness, the XRP ecosystem just got its stimulus package - no government approval required.

Ripple’s relationship with XRP

Ripple and XRP are related but distinct entities that are often confused with each other.

Ripple is a private crypto company that develops global payment solutions that rely on digital assets like XRP and Ripple USD (RLUSD) for their processes.

Notably, the firm is also the largest holder of the XRP token, controlling roughly 42% of the 100 billion total supply.

Ripple has 35 billion XRP tokens locked in escrow and releases one billion monthly under an on-ledger schedule. About 60% of those monthly releases are typically re-locked, creating a self-imposed cap that stabilizes issuance and maintains market trust.

Ripple's XRP Holdings

Ripple’s XRP Holdings (Source: Ripple)

Meanwhile, a DAT would flip the script from supply restraint to demand creation.

Instead of moderating outflows, Ripple would indirectly engineer inflows as institutional capital flows into an entity mandated to buy XRP. This would be a structural shift from emission control to market absorption.

XRP treasury companies

The idea of an XRP-focused firm is not entirely new. The crypto industry has seen different iterations of this for several digital assets, including Bitcoin.

Over the past year, a handful of firms have already experimented with XRP-centric reserves to different levels of success.

Notably, Singapore’s Trident Digital announced a $500 million fund in June, while Webus International pursued $300 million in May to back its chauffeur payments network.

Additionally, VivoPower International and Wellgistics followed with smaller allocations of $121 million and $50 million, respectively.

However, their stock performance has been sobering.

Since their announcements, these companies have seen their shares fall by as much as 70%, highlighting how digital-asset treasuries can magnify HYPE and risk.

Still, some, like Webus and Wellgistics, are doubling down on the XRP ecosystem to grow. For them, XRP treasuries aren’t short-term trades but infrastructure bets, but capital pools to support cross-border liquidity and enterprise payment rails.

Nonetheless, Ripple’s proposed DAT would eclipse them all.

At current prices around $2.30, a $1 billion reserve equals about 435 million XRP, or roughly 0.75% of the 60 billion in circulation, according to CoinGecko data.

How will this affect the XRP price?

An XRP treasury’s steady bid will help to fortify price floors and institutional confidence in the digital asset.

Data from CoinMarketCap shows that XRP’s liquidity on major exchanges is considerably thinner than that of rival tokens like solana and Ethereum.

Across the ten largest spot venues, including Binance, Coinbase, Bybit, and Upbit, the combined ±2 percent order-book depth amounts to just around $51 million.

XRP Market

XRP Market (Source: CoinMarketCap)

At that level, Ripple’s proposed $1 billion digital-asset treasury, if deployed evenly over 90 days at roughly $11 million in daily purchases, would represent more than 20% of all visible near-price liquidity on any given day.

Moreover, it would also equate to roughly twenty times the total depth within that immediate trading band. Such concentration suggests the market could react far more sharply to a sustained buying activity from the DAT firm.

Based on CryptoSlate’s analysis of current exchange depth and historical price elasticity, even moderate execution could meaningfully shift short-term valuations.

Deployment pace Share of visible depth absorbed Modeled short-term impact* Indicative move (from $2.30)
Slow (180 days) ≈ 10 % +2 – 3 % $2.35
Moderate (90 days) ≈ 20 % +6 – 8 % $2.45 – $2.48
Fast (45 days) ≈ 40 % + +12 – 15 % $2.55 – $2.65

While such accumulation would almost certainly involve OTC and algorithmic execution to reduce visible slippage, the concentration of liquidity implies that even careful deployment could trigger a temporary 8–15% price lift before markets adjust.

However, these gains would likely fade if the treasury paused purchases or secondary holders sold into strength.

|Square

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