XRP News Today: Ripple May Become XRP Treasury Company Within 12 Months Says Bitwise CEO

Ripple, the blockchain-based digital payment network, is under scrutiny as its significant holdings of XRP, the native cryptocurrency of the Ripple network, have sparked discussions about the company's future direction. Bitwise CEO Hunter Horsley has suggested that Ripple could potentially transition into an "XRP treasury company" within the next 12 months. This prediction comes as Ripple currently holds approximately 4.56 billion XRP, with roughly 42% of the total supply under its control through monthly escrow releases.

The concept of Ripple becoming an "XRP treasury company" implies a shift in focus towards managing and leveraging its vast XRP reserves more actively. This could involve using XRP as a treasury asset to support the company's operations, investments, and strategic initiatives. Such a move would align with Ripple's long-term vision of promoting the adoption of digital assets and blockchain technology in the financial sector.

Ripple's push for a bank charter and the development of an enterprise-ready technology stack further indicate the company's commitment to institutional adoption. These efforts signal a growing interest from traditional financial institutions in leveraging Ripple's technology for cross-border payments and other financial services. The potential transformation into an XRP treasury company could accelerate this institutional adoption by providing a more robust and transparent framework for managing digital assets.

The transition to an XRP treasury company would also address concerns about Ripple's control over the XRP market. By actively managing its XRP holdings, Ripple could mitigate market volatility and ensure a more stable ecosystem for XRP users and investors. This move could enhance the credibility and reliability of XRP as a digital asset, potentially leading to increased adoption and integration into mainstream financial systems.

However, the transition to an XRP treasury company is not without its challenges. Ripple would need to navigate regulatory hurdles and ensure compliance with relevant financial regulations. The company's current legal battles with the U.S. Securities and Exchange Commission (SEC) over the classification of XRP as a security add another layer of complexity to this potential shift. Despite these challenges, Ripple's strategic initiatives and the growing interest in digital assets suggest that the company is well-positioned to adapt and thrive in the evolving financial landscape.

Ripple's growing interest in digital assets extends beyond XRP. Its stablecoin, RLUSD, has reached a market cap of over $500 million. The company has tapped Bank of New York Mellon to serve as custodian for it. The oldest bank in the United States, is known for supporting digital asset custody services. Ripple’s choice adds traditional financial credibility to its stablecoin operations across XRPL and Ethereum.