Ripple’s XRP suffered from the Trump tariff threat, which worsened a recent downward trend in the coin.
XRPUSD – Daily Chart
XRP v USD had a very sharp move down to the 1.8964 level. The pair now needs to find buyers to stay away from the $2.00 level.
Ripple Labs is said to be preparing to raise $1 billion in order to create a dedicated XRP treasury, according to Bloomberg.
The Digital Asset Treasury (DAT) will comprise of newly acquired XRP tokens, as well as contributions from existing coin holdings. Ripple already holds a substantial XRP position and will look to create a vehicle to secure it. In May, the company controlled 4.5 billion tokens in its own wallet, with an additional 37 billion tokens locked on chains.
The proposed treasury idea could boost Ripple’s XRP holdings by up to 400 million, if invested at the average rice of approximately $2.40. The move would secure Ripple’s position as a top institutional holder of XRP.
On Thursday, Ripple announced the acquisition of GTreasury, a treasury management firm, in a $1 billion deal. The acquisition adds infrastructure that enables Ripple to oversee its treasury holdings in stablecoins, tokenized deposits, and other digital assets for corporate clients.
Bitcoin’s popularity soaked up all of the investment flows ahead of a recent sell-off and both events have placed a headwind on altcoins like XRP.
Investors are still focused on an XRP ETF and the U.S. Securities and Exchange Commission (SEC) has until October 25 to decide on the approval of an XRP fund. That could lead to institutional flows that could boost XRP if the market sentiment is positive for crypto.
Gold is becoming more popular as a safe haven in recent weeks and could overtake BTC after the recent flash-crash-style move.
