Rumours are spreading in the cryptocurrency market that Ripple Labs is preparing to buy up to $1 billion in XRP, a move that, if true, could reshape both market supply and investor sentiment.
According to reports in several popular media outlets, Ripple is reportedly spearheading a fundraising initiative to create a treasury vehicle dedicated to digital assets, possibly structured through an SPAC. The entity would use the proceeds to acquire XRP and hold it as a strategic reserve, with Ripple itself contributing a portion of its holdings.
So far, Ripple has not issued any official confirmation and no formal documents or transaction details have been made public. The plan remains "under discussion," according to sources close to the matter.
Why it's important for XRP
Ripple already controls a large portion of XRP's supply through escrow accounts, issuing about 1 billion tokens each month. A $1 billion buyback would further reduce the circulating supply, reinforcing the company's position as a major player in the ecosystem.
In addition to the market impact, such a move would represent a symbolic evolution in the way crypto companies manage their native assets, moving from transactional utility to more institutional reserve-like management. Analysts say this could be reminiscent of the way companies such as MicroStrategy hold Bitcoin as treasury collateral, but on a protocol-native scale.
At the same time, public perception is delicate. A huge build-up by Ripple risks reigniting concerns about centralisation, especially after years of regulatory scrutiny by the US SEC.
Despite the hype, XRP's price performance has not followed suit. After initial reports of the alleged buyback, the token fell nearly 9 per cent amid a general market decline.
Traders say the lack of concrete confirmation, coupled with persistent macroeconomic weakness, has kept enthusiasm contained.
The CoinGlass data show limited spikes in open interest or funding rates, suggesting derivatives traders remain cautious. Analysts note that many investors appear to be waiting for official documentation or communications from exchanges before opening new positions.
The road ahead
If confirmed, Ripple's plan would be one of the largest internal capital commitments in cryptocurrency history. It could strengthen the company's balance sheet, stabilise long-term liquidity, and signal a more profound institutional confidence in XRP.
However, important uncertainties remain, including whether the purchase will take place in the market, how tokens will be locked in, and whether regulators will require new disclosures.
For now, the market is treating the rumour as strategic smoke with no visible fire. But should Ripple's treasury expansion materialise, it could trigger the next big change in the way crypto treasuries, and the tokens that back them, are perceived globally.
