(Reuters) -Ripple has raised $500 million in a strategic investment valuing it at $40 billion, the crypto company said on Wednesday, in a funding round led by Fortress Investment Group and Citadel Securities.
The investment follows Ripple’s $1 billion tender offer earlier this year at the same valuation, the company said.
Following the GENIUS Act, which created a regulatory framework for stablecoins, more institutions are adopting stablecoins such as RippleUSD (RLUSD) for treasury payments and collateral management.
Fintechs and traditional financial firms are increasingly turning to stablecoins to streamline cross-border payments, accelerate settlements and expand access to digital finance.
Ripple, which provides crypto solutions to businesses, said the new capital would help deepen relationships with financial institutions and support its expanding product line, which now includes custody, stablecoin, prime brokerage and corporate treasury services.
Under the more cryptocurrency-friendly Trump administration, Ripple aims to expand institutional use of its XRP token and deepen its footprint in capital markets.
“This investment reflects both Ripple’s incredible momentum and further validation of the market opportunity we are aggressively pursuing,” said Brad Garlinghouse, CEO of Ripple.
(Reporting by Hannah Lang in New York and Prakhar Srivastava in Bangalore; editing by Sahal Muhammed)
