Ripple gets $40 billion valuation after $500 million funding round
Ripple CEO Brad Garlinghouse speaks at the 2022 Milken Institute Global Conference on May 4, 2022 in Beverly Hills, California, USA.
Mike Blake | Reuters
Digital asset and infrastructure company Ripple said on Wednesday that it has raised $500 million in funding, pushing its valuation to $40 billion.
The fundraising follows a series of acquisitions and as the company expands its product base beyond payments.
Crypto and digital asset companies are seeking to take advantage of what is seen by the industry as a more favorable environment in the United States following the election of President Donald Trump and the passage of a landmark stablecoin law known as the GENIUS Act.
Closely linked to Ripple XRP The cryptocurrency said the funding round was led by affiliates of Fortress Investment Group, affiliates of Citadel Securities, funds managed by Pantera Capital, Galaxy Digital, Brevan Howard and Marshall Wace.
‘Record year of growth’
“The decision to accept $500 million in new joint capital reflects the strategic value of deepening relationships with financial partners whose expertise complements Ripple’s expanding global product suite,” Ripple said, adding that it was continuing its “record year of growth.”
Ripple president Monica Long said in an interview with CNBC on Wednesday that the company does not need to raise any money, but is seeing demand from institutional investors who want a stake in the company.
“We think it makes sense to have them as strategic partners, as investors who will have a stake in building the future,” Long said.
Ripple has sought to position itself as a fintech firm offering crypto and digital asset technology to institutional clients.
When Ripple launched in 2012, the company initially focused on using blockchain technology to facilitate cross-border payments. Token XRP was used to move fiat currencies quickly.
Since then, Ripple has strengthened its payments business and expanded into new areas through aggressive acquisitions. Ripple said it has completed six acquisitions in just over two years.
Last year, the company launched its own stablecoin, a type of digital currency pegged to the US dollar and backed by real-world assets. Stablecoins are seen as an important way to move money around the world quickly because they can operate 24 hours a day. This year, Ripple acquired an enterprise-focused stablecoin platform called Rail.
Beyond payments, Ripple has branched out into other areas of business, including crypto asset custody, prime brokerage, and corporate treasury management.
Long said the company’s acquisition strategy focuses on companies that will complement Ripple’s core payments business or allow it to enter new areas.
“We will continue to look at where new opportunities arise in these two areas,” Long said.
While other crypto-focused companies like Circle have gone public, Long said it’s not on Ripple’s radar right now.
“We’re really pleased to see crypto companies going public, which is great for our overall industry to continue to mature,” Long said.
“We are not focused on an IPO at this time. We have the balance sheet, the liquidity to grow, and moves around mergers and acquisitions and other major strategic partnerships. We will remain private.”
Ripple’s funding comes as cryptocurrency markets remain volatile. bitcoin this week It fell below $100,000 for the first time since June, and billions of dollars were wiped out of the market.
