Ripple has unveiled a bold plan to launch a USD 1 billion buyback of XRP as part of its effort to establish a dedicated digital asset treasury (DAT). This move ranks among the most aggressive token-centric strategies aimed at deepening exposure to XRP. Here we examine the structure of the plan, the drivers behind it, and its potential risks and rewards for the XRP ecosystem.
The proposed structure involves raising capital via a special purpose acquisition company (SPAC), which would serve as the acquisition vehicle for large volumes of XRP. Ripple itself is expected to contribute from its existing holdings to the treasury. Together, these components are intended to strengthen XRP’s institutional backing and generate consistent demand pressure for the token.
Ripple already holds an estimated 4.5 billion XRP in its balance, in addition to 37 billion of tokens locked in escrow. If the buyback proceeds as outlined, the company could add approximately 427 million XRP to its holdings. That move would further cement Ripple’s significant strategic stake in the asset.
Ambitious strategy meets market reality
This initiative follows Ripple’s USD 1 billion acquisition of GTreasury, a corporate treasury management company. That deal enhances Ripple’s infrastructure capabilities for handling tokenized deposits, stablecoins, and digital asset operations—potentially streamlining integration with the proposed DAT.
Critics, however, raise important concerns. Some view the buyback as a maneuver to artificially inflate XRP prices rather than a demonstration of real demand or adoption. Others point out the vulnerability of large accumulation strategies during market downturns—where lack of liquidity or sentiment shifts can put accumulated assets under stress.
Supporters argue the buyback could serve as a strong bullish signal, tightening circulating supply and providing price support during times of selling pressure. In markets that await meaningful signs of institutional backing, Ripple’s move may bolster investor confidence.
Ultimately, Ripple’s USD 1 billion XRP buyback is a daring and high-stakes strategy. If executed with care and clarity, it could reshape Ripple’s role in the crypto landscape and reinforce XRP’s market position. But success will rely on risk management, market liquidity, and the broader perception investors adopt about the strategy’s legitimacy.
