Wellgistics Bets $50M on XRP to Revolutionize Healthcare Payments

Blockchain meets stethoscopes as Wellgistics makes a $50 million gamble on XRP integration.

The move could slash transaction times—if hospitals can stomach crypto's volatility.

Finally, a use case for XRP that doesn't involve dodging the SEC.

• XRP adoption by Wellgistics marks the first in the U.S. healthcare sector for treasury use.
• The company plans to utilize XRPL for real-time payments and collateral-backed loans.
• Wellgistics secured a $50M credit line to expand XRP holdings and integrate blockchain payments.

XRP comes into focus once more with Wellgistics Health, Inc., a Florida-based pharmaceutical distribution and health services company in the United States, attempting to embrace the digital currency within its treasury management agenda.

Attorney Bill Morgan notes that when Wellgistics filed with the U.S.-based Securities and Exchange Commission (SEC) recently, it indicated that the company will become the first U.S.-based health company to hold XRP in its treasuries.

What I have gathered from reading the S-1 FORM filed with the SEC today by Wellgistics Health is incredibly revealing. It is more than just a company using XRP in its treasury reserve.

This is a summary of what the filing revealed:

1. WH is not only planning to hold XRP as a…

This will constitute the first-ever effort to embrace the token not just in storage but in facilitating payment-based blockchain transactions in real-time, and this could redefine what traditional industries think about digital currencies.

To help enable its XRP adoption strategy, Wellgistics recently secured a $50 million Equity Line of Credit (ELOC) in May from global investment specialist LDA Capital. Wellgistics made it known that it intends to raise capital, issue debt securities, and consistently increase its holdings in the token.

Wellgistics will also aim to utilize the XRP Ledger (XRPL) to help enable payment services with pharmacies and suppliers, and make use of XRP to secure loans with collateral, with potential improvement in its financial versatility and liquidity.

Legal specialist Bill Morgan reflected on the SEC filing, noting that this represents more than a superficial attempt to hold crypto for branding. He cited the company’s multiple modalities of using the token in payment settlements, collateralization, earning income with holdings, and being actively involved in a blockchain-based system of money.

By Morgan’s estimation, this filing in particular defies the long-standing argument that the token lacks any significant utility. However, second thoughts. There are questions about whether a health company should be undertaking a digital asset that’s been prominently observed in banking and payment applications for cross-border transactions.

SEC Critic Slams Wellgistics XRP Plan

Marc Fagel, a former regulator with the SEC, was critical of the health company, citing modest revenues, ongoing net losses that are ongoing, and a “going concern” warning from accountants. Those are reasons that caused some to speculate that perhaps the effort might be investor-mandated rather than a financially savvy idea.

Others within the crypto community drew parallels with companies like Tesla and MicroStrategy, which notoriously bet their treasury reserves on Bitcoin. This comparison raises the query of Wellgistics’ endgame, whether it seeks to replicate a Michael Saylor-esque bet that crypto coins will triumph over hard currencies, or gauges concrete operational efficiencies in the block-based payment stream.

Morgan found reasons in both arguments, describing that it can be a combination of treasury diversification and belief in XRP’s usability in payment processing and liquidity management. What Morgan pointed out was that the real test lies in implementation.

It potentially challenges the no utility narrative for XRP if the company carries through the strategy revealed in the form S-1, especially in respect of using XRP for payments in its supply and customer lines and is not just using XRP treasury promises as an enticement to raise… https://t.co/Oo6eMaFdib

If WellgISTICS uses XRP in daily transactions with suppliers and purchasers, it will be a significant sign of how cryptoassets will be utilized within mainstream industries. But if the digital asset ends up being nothing more than a buzzword for some sort of fundraising campaign, the act will not go far in supporting claims of the token’s usability within the real world.