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XRP News: Why Ripple Is Buying $1 Billion in XRP Despite Holding $30 Billion in Escrow

Published by
Anjali Belgaumkar

Ripple Labs is reportedly preparing to raise at least $1 billion to accumulate XRP, the digital asset that powers its global payment network. The move, which may be executed through a special purpose acquisition company (SPAC), marks one of Ripple’s biggest commitments to date toward strengthening its ecosystem and market presence.

According to sources familiar with the plan, the raised funds will go into a digital asset treasury (DAT), a reserve structure designed to strategically hold or deploy XRP to support liquidity operations and long-term growth. Ripple itself may also contribute part of its holdings to this treasury, showing that the company is serious about putting real weight behind the initiative.

Why Buy XRP When Ripple Already Has Billions in Escrow?

At first glance, the plan raises eyebrows. Ripple already has over 30 billion XRP locked in escrow, with access to around 500 million tokens each month. So why spend billions to buy more XRP from the open market?

The reasoning is surprisingly strategic according to an expert. Instead of simply drawing from its escrow, Ripple appears to be aiming to build market confidence and demand for XRP. By purchasing XRP through open channels, the company creates positive buying pressure in the market.

This approach also allows Ripple to support liquidity on exchanges and within the XRP Ledger (XRPL) ecosystem. In short, Ripple isn’t just holding XRP,  it’s actively managing the token’s role in the ecosystem.

A Bullish Turn for the Market

For years, Ripple faced criticism for its periodic XRP sales, which some experts say weighed down prices. This new $1 billion accumulation plan flips that perception. Rather than distributing tokens into the market, Ripple is now turning into one of the largest institutional buyers of its own asset.

Anjali Belgaumkar

Writer by choice, CryptoCurrency Writer, and Researcher by chance. Currently, focusing on financial news and analysis, as well as cryptocurrency news and data. One may not call me a crypto “Enthusiast” but trust me I'm getting there.

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