Wall Street’s $500M Bet on Ripple Raises Valuation and XRP Questions

Wall Street’s growing involvement in crypto took a major step forward as Ripple secured a $500 million share sale at a $40 billion valuation, drawing both attention and skepticism from market participants. According to Bloomberg, the November funding round marked the highest private valuation achieved by a digital asset company in the current cycle, underscoring Ripple’s long-term effort to position itself as an institutionally acceptable crypto firm.

The funding round brought in heavyweight investors including Citadel Securities, Fortress, Marshall Wace, Brevan Howard, Galaxy Digital, and Pantera Capital. Rather than focusing solely on exposure to XRP, these institutions appeared more interested in Ripple as a company, particularly given the structured protections embedded in the deal. This reflects a broader trend of institutional capital entering crypto markets cautiously, prioritizing downside protection alongside upside potential.

One of the most notable features of the Ripple share sale was the buyback option granted to investors. Under the terms reported by Bloomberg, investors have the right to sell their shares back to Ripple after three or four years, earning an annual return of 10%. If Ripple itself chooses to initiate the repurchase, that return jumps significantly to 25% per year. Additionally, a liquidation-preference clause ensures that these investors are first in line should Ripple undergo a sale, restructuring, or similar corporate event. These terms resemble private equity-style safeguards rather than typical crypto venture deals.

Following the news, XRP price action showed modest strength, trading higher intraday and approaching the $2.09 level. While the move largely tracked broader market momentum, it highlighted that traders are closely watching developments around Ripple’s valuation and institutional backing. Still, questions remain about how much this funding round directly benefits XRP holders, as the deal centers on Ripple equity rather than the token itself.

Overall, Ripple’s $500 million raise reinforces its appeal to institutional investors seeking crypto exposure with structured risk management. At the same time, the $40 billion valuation has intensified debate over Ripple’s true market value and the evolving role of XRP within its broader ecosystem, keeping both Wall Street and crypto markets sharply focused on what comes next.