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- Zafar Naik
Zafar Naik
- Reviewed by:
Qadir AKQadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Dec 08, 2025 12:29 UTC
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How Wall Street Locked In Guaranteed Returns in Ripple’s $500M Share Sale
Wall Street backed Ripple’s $500M round but only after securing rare guaranteed returns.
Investors say Ripple’s valuation leans heavily on its massive XRP holdings despite recent market drops.
The deal’s safety nets reveal how big institutions are stepping into crypto with caution.
Ripple’s latest funding round, where they had raised $500 million at a $40 billion valuation, has sparked fresh discussion across the industry. This is because of how the deal was structured, according to Bloomberg.
Some of the biggest names in traditional finance, including Citadel Securities, Fortress Investment Group, Galaxy Digital, Brevan Howard, Pantera Capital, and Marshall Wace, joined the round and were set for success from the start. Here’s why.
A Funding Round With Safety Locks
This deal carried safeguards rarely seen. Investors secured the right to sell their shares back to Ripple after three or four years at a guaranteed 10% annual return, unless the company goes public first. Ripple can also choose to buy the shares back but doing so would require offering a 25% annualized return instead.
There’s also a liquidation preference, meaning these investors move to the front of the line if a major event like a sale or bankruptcy ever occurs.
While Wall Street wants exposure, it wants to be secure doing it.
XRP Continues to Shape Ripple’s Valuation
Another key detail stood out. According to multiple funds, roughly 90% of Ripple’s net asset value comes from XRP. The company held $124 billion worth of the token as of July, though much of it remains locked with scheduled releases.
XRP’s market performance has added pressure. The token is down 26.16% over the last 60 days and more than 30% from the past 90 days, during what has been one of the toughest selloffs since 2022.
Despite the drop, Ripple’s XRP holdings were still valued at $83.3 billion as of Sunday, comfortably above the valuation used in the share sale.
A Big Year for Crypto Fundraising
The Ripple deal lands in a year where crypto companies have already raised $23 billion, supported by a friendlier political environment after Donald Trump returned to the White House. Tether is also reportedly raising as much as $20 billion with interest from major global investors.
But the broader market picture remains uneven.
Several crypto firms that went public in 2025, including Circle, have seen sharp declines in their share prices. Even American Bitcoin Corp., co-founded by Eric Trump, plunged more than 50% in minutes on Dec. 2
Ripple, meanwhile, maintains it has “no plan, no timeline” for an IPO.
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FAQs
Investors can sell their shares to Ripple with a built-in 10% yearly return, while Ripple must offer a higher 25% return if it chooses to buy the shares back.
No. Ripple has repeatedly stated it currently has “no plan and no timeline” for an IPO, preferring to stay private while continuing to buy back shares when needed.
Top-tier names joined, including Citadel Securities, Fortress Investment Group, Galaxy Digital, Brevan Howard, Pantera Capital, and Marshall Wace—marking a big Wall Street vote of confidence in Ripple.
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