VivoPower has dedicated $100 million in XRP to Flare Community’s ecosystem in a bid to spice up returns on its digital asset holdings, in accordance with a June 11 assertion.
Via this transfer, VivoPower intends to leverage Flare’s on-chain protocols, together with Firelight, to generate sustainable yield from its XRP reserves.
The corporate plans to channel all earned proceeds into its XRP treasury, establishing a compounding progress technique for its crypto holdings.
The $100 million deployment represents the primary section of VivoPower’s broader company technique to make the most of blockchain-based options for institutional asset administration. The partnership additionally alerts a rising urge for food amongst institutional gamers to discover real-world utility inside the XRP and Flare ecosystems.
Kevin Chin, Govt Chairman and CEO of VivoPower, mentioned:
“We’re constructing a virtuous cycle: producing yield and utilizing it to systematically enhance our core XRP place, making a perpetually compounding engine for shareholder worth. Adopting Ripple’s RLUSD is a cornerstone of this technique, offering the soundness and compliance this next-generation treasury calls for.”
In the meantime, the announcement comes on the heels of VivoPower’s current $121 million non-public funding spherical. That spherical noticed the corporate situation 20 million odd shares at $6.05 every, edging above the prior market shut of $6.04.
This capital infusion helps gas VivoPower’s shift towards an XRP-focused treasury administration mannequin.
XRP ecosystem expands, however value motion lags
VivoPower’s transfer comes throughout a interval of accelerating growth for the XRP ecosystem.
Over the previous months, the digital asset’s blockchain community, XRP Ledger (XRPL), has seen vital adoption from main institutional gamers like Guggenheim Companions for real-world asset tokenization.
Past that, the community is on the verge of a big technological improve to broaden interoperability with the Ethereum ecosystem. Ripple CTO David Schwartz lately confirmed XRPL’s long-awaited Ethereum Digital Machine (EVM) sidechain is slated to go stay on mainnet by Q2 2025.
Nonetheless, these developments have but to translate into sturdy upward value momentum as XRP has traded largely inside a spread in current months.
Information from Polymarket displays this tempered sentiment, with bettors assigning solely a 39% probability that XRP will set a brand new all-time excessive this 12 months.
In response to CryptoSlate’s information, XRP is buying and selling at $2.31 as of press time, representing a 40% decline from its January all-time excessive of $3.8.
