Galaxy Digital Bets Big: XRP Becomes Cornerstone of Crypto Portfolio

Mike Novogratz's Galaxy Digital just doubled down on XRP—because nothing says 'institutional adoption' like a token still fighting the SEC.

The institutional seal of approval

The crypto investment giant now holds a significant XRP position, signaling growing Wall Street confidence in the embattled asset. Never mind that pesky lawsuit—when the whales move, retail follows.

Liquidity meets legacy

XRP's banking corridor roots give it unique appeal for institutional players. Galaxy's move suggests they're betting on payments infrastructure—or just hedging against Bitcoin's volatility with a token that's already taken its regulatory punches.

Meanwhile, traditional finance still can't decide if crypto is the future or a fraud. But hey, at least their indecision creates great entry points for the rest of us.

Galaxy’s Top Crypto Holdings

According to the filing, Galaxy’s top digital assets by value include:

• Bitcoin (BTC): $1.83 billion

• USD Coin (USDC): $263 million

• Ethereum (ETH): $225 million

• Solana (SOL): $170 million

• HYPE: $92 million

• XRP: $34.4 million

XRP’s presence in this high-value lineup signals Galaxy’s confidence in Ripple’s long-term vision for cross-border payments and blockchain utility in the financial system.

Regulatory Risks Still Linger

Galaxy’s filing also addresses the ongoing regulatory uncertainty surrounding XRP. In 2020, the U.S. SEC sued Ripple Labs for allegedly conducting $1.3 billion in unregistered securities sales through XRP. This lawsuit shook the market, and XRP’s market cap fell significantly during that time.

However, in a key 2023 decision, a U.S. District Court ruled that XRP itself is not a security, although certain institutional sales were considered investment contracts. While this ruling brought some clarity, the legal situation remained unresolved until 2025.

The SEC filed an appeal in January 2025 but later settled in May, agreeing to drop the case in exchange for a $50 million civil penalty from Ripple. Despite this settlement, Galaxy still cited the case in its report as part of the broader regulatory ambiguity that continues to affect the crypto sector.

A $97 Million Bet on Ripple Itself

Beyond its XRP holdings, Galaxy also revealed a significant equity stake in Ripple Labs Inc., Ripple’s parent company. According to the filing, Galaxy’s $97.3 million Ripple investment represents more than 5% of its total investment value, making it one of the firm’s most concentrated positions.

As of June 30, Ripple was listed alongside Galaxy-sponsored crypto funds and Bitcoin ETFs as one of the top three investments in Galaxy’s portfolio.

This level of commitment reflects a high-conviction bet on Ripple’s broader business model—especially its focus on improving cross-border payment infrastructure and enabling compliant tokenized financial products. Galaxy’s investment suggests confidence not just in XRP’s price potential, but also in Ripple’s enterprise applications and regulatory adaptability.

Institutional Conviction in XRP Growing

Galaxy’s allocation to XRP and its Ripple stake mirror a larger trend of institutional validation. While XRP has faced regulatory challenges, it continues to be integrated into financial products and discussed as part of central bank digital currency (CBDC) development and payment rail innovation.

With firms like Galaxy Digital reinforcing their XRP exposure, the market perception of the token may begin to shift—especially among traditional investors seeking blockchain assets with real-world utility.

This also aligns with Ripple’s own efforts to strengthen its position in the financial sector through partnerships, compliance-driven solutions, and infrastructure development for tokenized assets.

Final Thoughts

Galaxy Digital’s decision to allocate significant capital to both XRP and Ripple Labs sends a strong message about where it sees future value in the crypto space. Despite lingering regulatory concerns, Galaxy’s long-term view appears to favor XRP’s utility in cross-border finance and Ripple’s potential to shape the next generation of financial infrastructure.

As institutional players continue to make moves in the crypto sector, Galaxy’s XRP position could be a sign of renewed confidence in tokens with practical use cases and evolving regulatory clarity.