Ripple is expected to redefine its identity from a traditional global payment infrastructure company to an XRP-centered asset management company, dubbed the 'XRP Treasury Company'. Bitwise CEO Hunter Horsley anticipates this transformation within the next 12 months, mentioning the possibility of adopting cryptocurrency as a central part of corporate financial strategy, similar to Michael Saylor's MicroStrategy ($MSTR).
Ripple currently directly holds approximately 4.56 billion XRP, which is about 8% of the total supply. An additional 37 billion XRP is deposited in an automated smart contract-based escrow account, with a certain amount released to the market monthly. However, there is a nuanced difference as these escrow amounts are not considered to be under Ripple's direct ownership.
Ripple CEO Brad Garlinghouse previously argued that the company's valuation of around $11 billion was underestimated, citing the massive XRP assets in its possession. This claim has led to market interpretations that Ripple is strengthening its asset management characteristics beyond being a mere technology or payment network company.
Particularly, the movement to introduce XRP as a financial reserve asset is already becoming visible among some public companies. Trident Digital Tech Holdings announced plans to raise $500 million in XRP funds, and Webars International plans to purchase XRP worth $300 million. Additionally, Vivo Power International and Welgistics Health have successfully secured XRP-based funds worth $121 million and $50 million respectively.
The fact that approximately 42% of the total XRP supply is under Ripple's direct or indirect influence demonstrates its relative impact in the cryptocurrency ecosystem. Similar to how MicroStrategy established a strategic position by using Bitcoin (BTC) as a corporate asset storage method, analysts suggest Ripple could evolve into a new business model through a vault strategy centered on XRP.
If XRP establishes itself as a portfolio asset for institutional investors and corporations beyond a mere remittance method, this could fundamentally change Ripple's business direction. The industry is focusing on whether Ripple will truly transform into an 'XRP Treasury Company' over the next year.
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