After resolving a protracted legal battle with the U.S. Securities and Exchange Commission (SEC), Ripple is regaining Wall Street's trust and embarking on a full-fledged comeback. Recently, Ripple attracted investment from major institutional investors, achieving a staggering valuation of $4 billion (approximately 5.91 trillion won).
According to a Bloomberg report, Ripple successfully raised approximately $500 million (approximately KRW 738.7 billion) in November. Investors participating in this round include Citadel Securities, Fortress Investment Group, Brevan Howard-affiliated funds, Pantera Capital, and Galaxy Digital, all influential institutions in traditional finance.
What's interesting is the terms of the investment agreement. Ripple attracted attention by offering investors a "downside protection" clause. Participating funds can sell their investments back to Ripple after three to four years, guaranteeing a 10% annual return. If Ripple buys back the shares first, investors are required to receive a 25% annual return.
Ripple is simultaneously accelerating its strategic expansion, entering the stablecoin market in earnest and acquiring companies in the brokerage and treasury management sectors. Nevertheless, Bloomberg reported that some investors are focusing on the future value of Ripple's token, XRP, beyond simple corporate growth.
Ripple, once hampered by regulatory risks, appears to have regained Wall Street's trust with this investment. It remains to be seen what Ripple's future path will be, both in stablecoins and across blockchain-based asset management.
๐ Market Interpretation
Ripple has successfully attracted funds from traditional financial institutions, demonstrating a strategy for both restoring trust and expanding beyond regulatory issues. Expectations of a rise in XRP prices are also serving as a hidden investment rationale in the market.
๐ก Strategy Points
Investor-friendly structures, including downside protection provisions, offer a model for raising funds even during uncertain times. This can be seen as an example of linking token value with corporate value.
๐ Glossary
Downside protection: An investment method in which a company guarantees a certain rate of return or redemption conditions to reduce the risk of investment loss.
Stablecoin: A cryptocurrency pegged to fiat currency, such as the US dollar, that minimizes asset volatility and is used for payments and fund management.
TP AI Precautions
This article was summarized using a TokenPost.ai-based language model. Key points in the text may be omitted or inaccurate.
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