Nasdaq-listed firm moves toward $1B XRP exposure

A Nasdaq-listed institution is mounting up a mode for investors to summation vulnerability to astir $1 cardinal worthy of XRP, without really buying the cryptocurrency itself.

On Dec. 18, VivoPower said its integer plus unit, Vivo Federation, was engaged by South Korea–based plus manager Lean Ventures to root an archetypal $300 cardinal worthy of Ripple Labs equity.

Based connected existent XRP prices, VivoPower estimates this could construe into vulnerability linked to astir 450 cardinal XRP tokens, valued astatine astir $900 million.

The woody does not impact buying XRP directly.

Related: XRP becomes 3rd largest crypto aft SEC drops lawsuit against Ripple

Instead of purchasing XRP tokens, Lean Ventures plans to acceptable up a dedicated concern conveyance that volition clasp shares successful Ripple Labs. Those shares are being sourced by Vivo Federation and approved by Ripple.

Ripple Labs is the institution that helped make the XRP Ledger and remains intimately associated with the XRP ecosystem, including holding a important magnitude of XRP. However, Ripple does not ain oregon power the XRP Ledger web itself.

By owning Ripple shares alternatively than XRP tokens, investors tin summation indirect vulnerability to XRP-related economics without holding the cryptocurrency directly.

Related: XRP flips Tether, becomes third-largest crypto aft Bitcoin and Ether

This setup avoids respective hurdles tied to nonstop crypto ownership, specified arsenic custody, token transfers, and definite regulatory and compliance challenges.

The concern conveyance volition people organization investors and qualified retail investors successful South Korea, 1 of XRP’s astir progressive planetary markets.

Ripple has already approved the acquisition of an archetypal tranche of preferred shares, according to VivoPower, with discussions ongoing to get further shares from existing organization holders.

• Former Trump state praises Michael Saylor's caller Bitcoin move

• Michael Saylor's MicroStrategy moves billions successful Bitcoin

• Analyst downgrades MicroStrategy amid higher dilution

VivoPower volition not put its ain equilibrium expanse superior into the vehicle.

Instead, the institution plans to gain wealth done absorption fees and performance-based incentives. If the afloat $300 cardinal mandate is completed, VivoPower expects to make astir $75 cardinal successful nett economical returns implicit 3 years.

This attack allows VivoPower to payment financially from the woody without taking nonstop marketplace hazard connected XRP prices.

XRP was trading astir $1.87, down connected the time and nether unit alongside the broader crypto market.