Ripple’s Valuation Hits $40 Billion later than $500M Strategic Round
Fortress and Citadel Lead New Round
Ripple has raised $500 million from institutional investors including Fortress Investment Group and Citadel Securities, valuing the crypto company at $40 billion. Other backers include Pantera Capital, Galaxy Digital, Brevan Howard and Marshall Wace.
The deal comes weeks later than a $1 billion tender offer at the identical valuation, extending Ripple’s capital base and adding several of the largest players in traditional finance to its investor roster. The latest round was structured as new common equity, the company said.
“This investment reflects both Ripple’s incredible momentum, and further validation of the market opportunity we’re aggressively pursuing by some of the most trusted financial institutions in the world,” said CEO Brad Garlinghouse. “We begined in 2012 with one use case — payments — and have expanded that success into custody, stablecoins, prime brokerage and corporate treasury, leveraging digital assets like XRP.”
Investor Takeaway
Expanding Beyond Payments
Best known for using its XRP token in cross-border payments, Ripple has been purchaseing into other areas of digital finance. Over the past two years it has acquired six companies, including billion-dollar deals for custody firm Metaco, stablecoin platform Rail and treasury technology provider GTreasury. These purchases have pushed Ripple into custody, brokerage, and stablecoin infrastructure — segments traditionally dominated by banks and fintech incumbents.
Ripple’s flagship product, Ripple Payments, has now processed more than $95 billion in transactions. The company’s stablecoin, RLUSD, launched earlier this year, surpassed $1 billion in market capitalization this week. It is already being used as collateral in Ripple Prime, the firm’s institutional brokerage platform designed for digital asset trading and credit operations.
Garlinghouse said the company’s goal is to build an institutional ecosystem that connects payments, liquidity and asset management through blockchain technology. “Today, Ripple stands as the partner for institutions looking to access crypto and blockchain,” he said.
Ripple’s Broader Strategy
The funding underscores Ripple’s shift from a single-use payments business into a diversified infrastructure provider. Its acquisitions have brought regulatory licenses, custody technology and stablecoin issuance under one roof. The integration of Metaco’s storage systems and Rail’s settlement tools has allowed Ripple to offer end-to-end answers for banks and asset managers entering the digital asset market.
The company has also expanded geographically, with Ripple Payments and RLUSD now active across several key corridors in North America, Europe and Asia. Analysts said the firm’s push into custody and brokerage puts it in closer competition with Coinbase and Circle, which have been expanding similar services for institutional clients.
Ripple’s ongoing legal clarity in the United States following partial court victories in its SEC case has made it easier to attract investors and counterparties. The firm’s valuation of $40 billion, unchanged from the recent tender offer, places it among the largest private companies in crypto alongside OpenSea and Fireblocks.
Investor Takeaway
Outlook
With a balance sheet now reinforced by both new investors and its recent purchaseback, Ripple is expected to continue expanding its institutional services and international footprint. The company’s volume growth and ahead traction with RLUSD suggest it is viewking a role as a full-stack financial technology provider rather than a niche crypto payment firm.
While competitors such as Circle and Tether dominate stablecoin issuance, Ripple’s regulated structure and integration with institutional partners may give it an advantage in markets viewking compliance and transparency. The coming quarters will show whether Ripple can convert that regulatory headroom into broader adoption across corporate and banking clients.
