Ripple-Backed Evernorth Raises Over $1 Billion for Institutional XRP Exposure
Evernorth Holdings Inc., a newly shaped Nevada company that goals to allow institutional adoption of Ripple (XRP), has formally launched and entered a enterprise mixture settlement with Armada Acquisition Corp II, a publicly traded particular goal acquisition firm (SPAC).
The firm stated it’ll mix public market entry with an energetic treasury mannequin to supply a novel bridge for institutional traders in search of regulated, scalable publicity to the crypto asset.
Once the transaction closes, the mixed firm will function underneath the Evernorth title and is anticipated to commerce on Nasdaq underneath the ticker image “XRPN,” pending customary itemizing necessities.
Evernorth’s XRP Treasury Vehicle
According to the press launch shared with CryptoPotato, the deal is projected to lift over $1 billion in gross proceeds. This includes $200 million from SBI and extra investments from Ripple Labs and Rippleworks, which is a charitable basis supporting social affect ventures. Other distinguished digital asset and fintech traders embody Pantera Capital, Kraken, and GSR. Ripple co-founder Chris Larsen will even be taking part.
Net proceeds will primarily be used to buy XRP within the open market to determine a big institutional treasury for the crypto asset. A portion of the funds can be allotted to working capital, company operations, and transaction-related bills.
Unlike a conventional passive ETF, Evernorth plans to extend XRP holdings per share over time by partaking in institutional lending, liquidity provisioning, and decentralized finance (DeFi) yield alternatives.
In a press release, Evernorth CEO Asheesh Birla stated.
“Evernorth is constructed to supply traders extra than simply publicity to XRP’s worth. As we capitalize on present TradFi yield era methods and deploy into DeFi yield alternatives, we additionally contribute to the expansion and maturity of that ecosystem. This method is designed to generate returns for shareholders whereas supporting XRP’s utility and adoption. It’s a symbiotic mannequin: our technique is designed to align with the expansion of the XRP ecosystem.”
Bets on XRP
Last week, London-based VivoPower International raised $19 million in contemporary fairness at $6.05 per share in a bid to increase its XRP treasury technique. The funds will assist debt discount and increase the corporate’s long-term XRP holdings.
Earlier, VivoPower partnered with Doppler Finance on a $30 million XRP deployment, which is a part of a deliberate $200 million allocation. Additionally, the agency has been testing Ripple’s RLUSD stablecoin for cross-border funds inside its Tembo EV unit for sooner settlement and decrease prices.
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