Ripple's Major Milestones: $500 Million Funding and MasterCard Partnership for RLUSD

Ripple has successfully raised $500 million from institutional investors, boosting its valuation to $40 billion. Additionally, the company has formed a partnership with MasterCard to facilitate RLUSD settlements on the XRP Ledger (XRPL). Despite these developments, many XRP holders are facing challenges, with a significant portion of the supply remaining unprofitable.

Key Takeaways

Ripple attracted $500 million from institutional investors and has teamed up with Mastercard for RLUSD settlements on XRPL.
Only 65% of XRP supply is in profit, indicating many holders face losses, particularly those who bought at peaks.
Although XRP has increased by 12% year-to-date, concerns grow over Ripple's focus on institutional investments rather than supporting XRP holders.
Ripple has significantly invested in its ecosystem, prompting questions about whether its trajectory is more aligned with Wall Street than with its dedicated XRP community.

Ripple Strengthens Institutional Presence with New Funding

Ripple is actively advancing its strategy to align closely with SEC regulations. Recently, the company announced a $500 million investment from six different institutional investors, pushing its valuation to an impressive $40 billion. This valuation positions Ripple as one of the most valuable private companies in the cryptocurrency sector, comparable to many firms in the S&P 500 index based on market capitalization.

RLUSD Ripple
Source: Glassnode

Ripple is making strides in the payments market. The company recently partnered with MasterCard to introduce RLUSD, its native stablecoin, which will facilitate instant settlement for credit card payments on the XRPL. When a customer uses a Mastercard, backend settlements can occur almost immediately using RLUSD, reflecting Ripple's strategy to expand the market for its stablecoin.

Is Ripple Focused on Wall Street or XRP Holders?

There is a growing divide in the market regarding whether Ripple's current direction benefits XRP holders. Current metrics indicate that only 65% of the XRP supply is generating profits, a level that has not been seen in the last year. Many investors who purchased XRP during the peak prices of $3.35 are now facing losses.

Coincidentally, Ripple co-founder Chris Larsen sold 60 million XRP in the third quarter, reducing his total holdings from 3.18 billion to 2.35 billion. This move has led some to speculate that it was aimed at enhancing Ripple Labs’ enterprise value.

XRP
Source: CryptoQuant

Critics suggest that Ripple is prioritizing its credibility on Wall Street over the interests of XRP holders. The company is liquidating XRP to improve its valuation rather than supporting its own token holders. With plans for a $1 billion buyback of company shares instead of buying back XRP tokens, the concern is growing that future XRP sales may continue to underpin Ripple’s institutional ambitions, leaving XRP investors sidelined in terms of gains.

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