Ripple Moves $500 Million in XRP for New Treasury Plan

Ripple has moved $500 million worth of XRP to a new account that has no escrow or multi-signature protection. The transfer caught attention on the XRP Ledger as the company worked on plans to raise up to $1 billion for an XRP treasury firm.

Ripple’s $500 Million Transfer Raises Questions

Ripple has sent $500 million in XRP to a new account, according to data shared by XRP Ledger validator Vet. The transfer stood out because the account has no multi-signature setup or escrow, which is unusual for a large amount. Vet said he was surprised that Ripple would move such a sum to an account without extra security.

XRP Scan records show that Ripple moved 220 million XRP to this fresh account. Vet explained that creating new accounts is not new for Ripple. The company often uses multiple accounts for different operations. However, he noted that this transfer does not relate to Ripple’s monthly escrow releases, which took place earlier in the month.

The company’s escrow process usually involves unlocking and relocking part of its XRP holdings each month. Ripple holds about 41.85 billion XRP, which is around 35% of the total token supply.

In a separate development, Ripple Labs has teamed up with Bahrain Fintech Bay to boost its Middle East presence. The aim is to promote its U.S. dollar-backed stablecoin, RLUSD, as part of efforts to make Bahrain a regional digital finance hub.

Chainlink to XRP Treasury Plan

The transfer may be connected to Ripple’s plan to set up an XRP treasury company. Reports say Ripple wants to raise up to $1 billion for this project. The new company, often called a digital asset treasury, would hold XRP as part of its reserve.

The goal could be to create a central place to manage and store Ripple’s XRP more effectively. Moving a large amount of XRP to a new account might be part of setting up funds for this plan. Ripple has not released an official statement explaining the transfer, but the timing matches the company’s treasury project.

Focus on Long-Term Holders

Vet said the treasury plan could help with long-term distribution of XRP. He compared it to funds that hold assets instead of trading them right away. This could reduce short-term selling and help stabilize the market.

He added that if Ripple finds holders willing to keep XRP for longer, it could ease selling pressure on exchanges. Vet believes that spreading XRP among long-term holders is better for the token’s future stability.

In related development, Ripple Labs has partnered with Absa Bank, one of Africa’s biggest and most trusted financial institutions, to launch a new digital asset custody service in South Africa.