XRP Treasury Role: Is Ripple Shifting Its Focus?

XRP is once again in the spotlight as discussions emerge around Ripple’s evolving corporate identity, sparking speculation that it may soon function more like a dedicated XRP treasury. This shift in perception follows recent comments from Bitwise CEO Hunter Horsley, who floated the idea that Ripple could be described as an ‘XRP treasury company’ in the near future.

Traditionally seen as a blockchain-based payment solutions provider, Ripple has built its reputation on facilitating cross-border transactions. However, recent developments are leading many to reconsider the company’s role in the cryptocurrency ecosystem. With substantial XRP holdings and increasing interest from institutions treating XRP as a reserve asset, Ripple’s position seems poised for redefinition.

In Ripple’s most recent XRP markets report for the first quarter, the company stated that its total XRP holdings now amount to 4.56 billion tokens. In addition, another 37 billion XRP tokens remain in escrow. These escrowed funds are not directly under Ripple’s control and are instead managed via automated, on-ledger smart contracts that release a set amount of tokens on a monthly basis.

Altogether, these resources highlight Ripple’s significant influence over a large portion of XRP’s total supply. Approximately 42% of all existing XRP still aligns with Ripple’s control or strategic allocation methods. Although not all of it is liquid or accessible at once, this massive stake gives the company an undeniable impact on the XRP ecosystem.

Ripple CEO Brad Garlinghouse has previously highlighted the undervaluation of the company. He argued that Ripple’s financial worth extends far beyond the previously quoted $11 billion valuation, citing its XRP reserves which reportedly equate to nearly $100 billion in value. Garlinghouse’s comments reinforce the narrative that Ripple’s assets may align more closely with that of a treasury organization rather than solely a fintech enterprise.

Meanwhile, several other firms are also beginning to treat XRP as a treasury reserve asset, further validating its evolving role. For instance, Trident Digital Tech Holdings has unveiled plans to raise $500 million in XRP, while Webus International aims to secure $300 million in the digital currency. Additional companies like VivoPower International and Wellgistics Health have gathered $121 million and $50 million, respectively, to build out their own XRP-backed treasuries.

This growing trend suggests that institutions are not just trading XRP but actively integrating it into their long-term capital structures. Such moves highlight a maturing market sentiment, one that increasingly views XRP as a legitimate reserve asset rather than merely a transactional medium or speculative token.

With organizations moving to hold XRP in strategic reserves and Ripple commandeering a sizable portion of the token’s total supply, the concept of Ripple operating in a capacity similar to a treasury-only entity begins to make more sense. The comparison to MicroStrategy’s Bitcoin-heavy strategy is not all that far-fetched—though Ripple’s foundations lie in building payment infrastructure, the magnitude of its XRP holdings means its influence extends much deeper.

Related: XRP Price: $12M Max Pain for Bears

Whether Ripple will formally pivot to that role remains to be seen, but the groundwork is certainly in place. As the digital asset space develops and institutions continue to reimagine how cryptocurrencies fit into their financial strategies, Ripple’s massive XRP inventory could naturally position it at the heart of a potential treasury movement within the crypto sector.