Ripple secured $500 million from institutional investors including Fortress Investment Group, Citadel Securities affiliates and Pantera Capital, bringing the blockchain payments company's valuation to $40 billion. The Wednesday announcement marks a significant milestone for the firm as it expands beyond its original payment processing business into custody services, stablecoins and prime brokerage.
What to Know:
- Ripple raised $500 million at a $40 billion valuation from investors including Fortress Investment Group, Citadel Securities affiliates, Pantera Capital, Galaxy Digital, Brevan Howard and Marshall Wace
- The company has completed six acquisitions in just over two years, including two transactions valued above $1 billion each
- Ripple's stablecoin RLUSD reached a $1 billion market cap in under a year, while the company's prime brokerage business tripled in size following the Hidden Road acquisition
Funding Signals Institutional Push
Brad Garlinghouse, Ripple's chief executive, said the investment reflects the company's growth trajectory and validates its aggressive expansion strategy. The firm started in 2012 with a single focus on payment processing but has since branched into multiple business lines.
"We started in 2012 with one use case—payments—and have since expanded into custody, stablecoins, prime brokerage, and corporate treasury, leveraging digital assets like XRP," Garlinghouse said. "Today, Ripple stands as the partner for institutions looking to access crypto and blockchain."
The backing from traditional finance heavyweights signals growing institutional comfort with blockchain technology.
Citadel Securities operates as one of Wall Street's largest market makers, while Fortress manages billions in alternative assets. Brevan Howard and Marshall Wace run prominent hedge funds.
Ripple's acquisition spree has reshaped its business model. The company bought Hidden Road and rebranded it as Ripple Prime, creating a prime brokerage platform where institutional clients can execute trades and use digital assets as collateral. Client collateral at the unit has doubled since the deal's announcement, while average daily transaction volume climbed above 60 million.
Stablecoin and Market Performance
The company recently launched spot prime brokerage services for American institutional clients. The platform enables over-the-counter transactions in various digital assets, including XRP and RLUSD, Ripple's proprietary stablecoin.
RLUSD crossed the $1 billion market capitalization threshold less than a year after its introduction.
The stablecoin now serves as collateral within Ripple Prime's operations. Stablecoins are digital tokens designed to maintain a fixed value, typically pegged to government-issued currencies like the U.S. dollar, providing a stable medium for crypto transactions without the volatility of assets like Bitcoin or Ether.
XRP, the digital asset associated with Ripple's payment network, traded at $2.27 on Wednesday, rising 4% in 24 hours following the funding announcement. The token declined nearly 14% over the previous week amid broader market uncertainty.
Prime brokerage refers to bundled services that financial institutions provide to hedge funds and other sophisticated investors, including trade execution, custody and lending.
Ripple's expansion into multiple crypto services positions the firm to compete with both traditional financial institutions and crypto-native companies. The funding provides capital for further acquisitions and product development as regulatory frameworks for digital assets continue evolving.
Final Thoughts
The $40 billion valuation places Ripple among the most valuable private blockchain companies. The funding round demonstrates sustained investor appetite for crypto infrastructure despite market volatility affecting token prices. Ripple's diversification from payments into custody, stablecoins and brokerage services reflects the maturing crypto industry's shift toward institutional adoption.