Webus and the Emergence of XRP Treasuries: A Strategic Outlook
In a significant move within the financial technology sector, the Chinese corporation Webus has announced plans to initiate a substantial $300 million XRP treasury. This development has been formally communicated through a Form 6-K filing with the United States Securities and Exchange Commission (SEC), outlining the company’s strategic approach to establishing a dedicated XRP treasury.
Webus Initiates Form 6-K Filing for XRP Treasury with the SEC
The recent SEC filing reveals that Webus has submitted Form 6-K, marking a pivotal step in its ambition to create an XRP treasury. The Chinese enterprise has entered into a Delegated Digital-Asset Management agreement with Samara Alpha. This partnership is set to lay the groundwork for future digital asset treasury operations aimed at enhancing Webus’s financial portfolio.
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Webus disclosed last week its exploration of a financial strategy to generate up to $300 million, intended to support a reserve of XRP for advancing global payment solutions. The financial strategy involves leveraging existing cash reserves, acquiring bank loans, securing shareholder guarantees, and engaging third-party institutional-backed credit facilities from established financial institutions to accomplish this goal.
Incorporating XRP blockchain technology is anticipated to revolutionize Webus’s handling of international payments, offering enhanced efficiency for partners and travelers globally. Concurrently, Nasdaq-listed VivoPower is also paving the way for an XRP treasury, adding momentum to this financial trend.
VivoPower’s Strategic Move in the XRP Ecosystem
According to reports from Bitcoinist, VivoPower has successfully amassed $121 million to become the first publicly traded company to embark on an XRP-centric treasury and decentralized finance (DeFi) initiative. In pursuing this strategic goal, VivoPower has formed a collaboration with BitGo to manage an initial acquisition of $100 million in XRP, integral to its treasury strategy.
BitGo will serve as VivoPower’s exclusive over-the-counter (OTC) trading desk, facilitating the acquisition of XRP tokens. Additionally, BitGo’s platform will support the trading and custody of VivoPower’s XRP holdings, offering 24/7 trading capabilities and secure asset management.
Growing Prospects for an XRP Exchange-Traded Fund (ETF)
The momentum surrounding XRP is further bolstered by the increasing likelihood of an XRP ETF being launched within the year. Data from Polymarket indicates a substantial 92% probability of SEC approval for such an ETF by the end of December. However, it is important to note that the ETF may not be available during the first half of the year, with only an 18% chance of approval by July.
The introduction of XRP ETFs is poised to attract more institutional investment into the XRP ecosystem, potentially boosting the altcoin’s market value. Crypto analyst BarriC has forecasted a significant price rally for XRP, predicting it could surge to between $10 and $20 following ETF approvals.
Several financial firms, including Grayscale, Bitwise, Canary Capital, 21Shares, Wisdomtree, CoinShares, and Franklin Templeton, have all submitted filings to offer an XRP ETF, signaling widespread interest in this financial instrument.
As of now, XRP is trading at approximately $2.18, experiencing a slight decline of over 2.14% in the past 24 hours, based on CoinMarketCap data.
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