Reports that Ripple intends to raise $1 billion to purchase XRP have sparked intense discussion within the community. Although the company has not officially confirmed the plan, Bloomberg’s report on the initiative has already drawn speculation about Ripple’s strategy and how it could affect perceptions of its long-term approach to XRP management.
Community commentator Nietzbux (@nietzbux) explained Ripple’s approach, suggesting that several structural and strategic factors might be behind the decision to raise capital instead of drawing directly from its escrow holdings.
There are several reasons Ripple would buy new XRP with new capital for a treasury, yet many ask, why not just move all from the escrow?
A purely speculative factor: maybe the pre-allocation theory is correct and Ripple has less XRP in the escrow than the public thinks.
— nietzbux (@nietzbux) October 17, 2025
Ripple and the Growing Interest in XRP Treasuries
Recent months have seen several companies announce or develop XRP treasury programs, indicating growing institutional interest in holding XRP as a strategic asset.
VivoPower, for instance, secured $19 million earlier this month to expand its XRP treasury. Similarly, Everything Blockchain and Trident Digital have each revealed plans to build their own holdings.
In this context, the possibility of Ripple joining the trend has attracted considerable attention. Establishing a formal XRP treasury could enhance market confidence, signaling that the company remains committed to the asset’s role in liquidity and payments infrastructure.
However, this raises a central question among community observers. If Ripple already controls a large escrow account containing roughly 35 billion XRP, why not use a portion of those tokens instead of raising fresh funds?
Why Is Ripple Not Using Escrowed Tokens
This question has prompted various interpretations within the XRP community. According to Nietzbux, the decision could relate to how Ripple’s escrowed XRP is structured and potentially committed. While emphasizing that his view is speculative, he referenced a long-discussed theory suggesting Ripple may have previously entered into institutional agreements that pre-allocated portions of its escrow holdings.
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If Ripple’s escrowed XRP is partially reserved or already sold to institutions, the company may have limited access to those tokens. This could explain its plan to raise funds for new XRP purchases, though Bloomberg noted some escrowed tokens might still be used, leaving questions about Ripple’s actual control.
A Step Toward a Formal Treasury Strategy
Nietzbux noted that interest in a Ripple-backed XRP treasury has grown for months. Last year, he asked when the company would begin acquiring XRP for that purpose. In July, Bitwise CEO Hunter Horsley suggested Ripple could become an XRP treasury firm within a year.
While the reports remain unconfirmed, enthusiasm within the community is clear. If Ripple proceeds with the plan, it could signal a move toward institutional XRP management and stronger integration within payment and liquidity systems, showing Ripple’s confidence in the asset’s future.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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