Ripple is shifting its focus, potentially moving towards treating XRP as a reserve asset. This proposed transformation raises questions about the company’s future strategy.
Ripple's Changing Strategy
According to Bitwise CEO Hunter Horsley, Ripple could become an 'XRP treasury company' within the next year. He noted that the current corporate demand for XRP is increasing, indicating deep changes in the company's strategy.
Surge in XRP Holdings
Ripple's Q1 2025 XRP Markets Report reveals that the company holds 4.56 billion XRP, which constitutes about 42% of the total supply. This XRP is managed through an escrow mechanism, allowing Ripple to maintain market connections.
Stablecoin RLUSD Developments
Ripple is also focusing on other digital assets, including its stablecoin RLUSD, which has reached a market cap of over $500 million. Recent dealings with Bank of New York Mellon will provide added stability and trust to the company's assets.
Ripple's potential shift towards a greater reliance on XRP as a reserve asset could lead to significant changes in its operations and a range of new challenges. The accompanying rise in interest in digital assets underscores the importance of this transformation.
