Citadel and Fortress Support Ripple’s $500 Million Fundraising, Valued at $40 Billion

Blockchain payments company Ripple has been valued at an impressive $40 billion after securing significant equity investments from Citadel Securities and Fortress Investment Group. This development highlights the increasing interest in blockchain technology from mainstream financial institutions.

Key Takeaways

Ripple has secured $500 million in funding, leading to a valuation of $40 billion.
Key investors include Citadel Securities and Fortress Investment Group.
Ripple is making significant strides in the stablecoin market, particularly with its RLUSD stablecoin.
There is a growing trend of institutional investment in blockchain technology and cryptocurrencies.
Regulatory advancements are creating a more conducive environment for digital asset innovation.

Citadel and Fortress Support Ripple’s $500 Million Fundraising, Valued at $40 Billion

According to a report from the Financial Times, Ripple raised $500 million from a variety of investors during its latest funding round, which helped solidify its high valuation. This move signifies a larger trend, as established Wall Street firms are proactively looking to invest in the digital payments and blockchain sector, even amidst ongoing market challenges.

Other notable investors in this round included the hedge fund Brevan Howard, as well as crypto-focused venture capital firms like Pantera and Galaxy Digital.

While Ripple is primarily recognized for its XRP token, which enables quick and inexpensive cross-border transactions on its XRP Ledger, the company is increasingly focusing on the development of stablecoins. The Financial Times pointed out that Ripple’s progress in this area may be a significant factor driving the latest influx of investment.

As previously reported by Cointelegraph, Ripple’s RLUSD stablecoin has successfully entered the ranks of the top 10 U.S. dollar-backed stablecoins less than a year after its launch.

The Ripple USD stablecoin has surpassed $1 billion in market capitalization. Source:CoinMarketCap
_Related:_Ripple Aims to Acquire $1 Billion XRP Tokens for New Treasury: Report

Growing Institutional Interest in Cryptocurrency

Ripple’s recent fundraising is a part of a broader trend showcasing the increasing institutional acceptance of blockchain technology. Several crypto-native companies, such as Circle, Gemini, Bullish, and Figure Technology Solutions, have made notable transitions to publicly traded companies this year, reflecting a resurgence in investor confidence in the cryptocurrency sector.

Furthermore, BlackRock has reported a significant increase in income from its cryptocurrency exchange-traded funds (ETFs), emphasizing the growing desire for digital asset investments among traditional investors.

In addition, Goldman Sachs and BNY Mellon have ventured into the tokenization market, providing institutional clients opportunities to access tokenized money market funds and other blockchain-based financial products.

This wave of development is bolstered by a more favorable regulatory environment, including the recent passage of the GENIUS stablecoin bill and progress toward comprehensive U.S. legislation aimed at establishing clearer guidelines for digital assets.

Related:__Citi Examines Stablecoin Payments Through New Collaboration with Coinbase