Evernorth Builds $1B XRP Treasury to Push XRP’s Adoption
Evernorth revealed plans to go public and build the world's biggest XRP treasury as part of its business combination agreement.
Evernorth has announced plans to go public and build the world's largest XRP treasury as part of the transaction. With Ripple and other significant institutional investors on board, the business hopes to raise more than $1 billion to buy the XRP coins.
Evernorth Plans to Create the Largest XRP Treasury
In a news release, Evernorth stated that company plans to raise more than $1 billion in gross proceeds, including $200 million from SBI and additional investments from Ripple, Rippleworks, Pantera Capital, Kraken, and GSR. Chris Larsen, Ripple's co-founder, has also invested in the startup.
The company indicated that the net revenues will be used to fund open-market XRP acquisitions in order to establish the world's premier institutional XRP treasury. This comes after the announcement last week that Ripple was planning to fund $1 billion through a special purpose acquisition company (SPAC) to keep XRP as its reserve asset.
Evernorth has now announced the signing of a commercial agreement with Armada Acquisition Corp II, paving the way for its public offering. Following the deal, both firms will operate under the Evernorth name and trade on the Nasdaq under the symbol ‘XRPN.'
Meanwhile, a prior source stated that Ripple planned to give some of its XRP assets to the proposed XRP treasury. The cryptocurrency corporation appears to have done so, having transferred $500 million in XRP last week to a new account that has yet to establish a multi-signature.
First Of Its Kind Treasury Vehicle
Evernorth announced that the company is intended to provide investors with “simple, liquid, and transparent exposure to XRP through a publicly listed vehicle.” The company intends to increase its XRP per share over time by investing in institutional lending, liquidity provisioning, and DeFi yield prospects.
Former Ripple executive Asheesh Birla will be the company's CEO. Birla commented on this decision, stating that they intend to provide more than simply XRP price exposure, but also to contribute to the ecosystem's growth and maturity by capitalizing on existing TradFi yield generating tactics and allocating their XRP treasury to DeFi yield prospects.
He also stated that this technique will provide returns for shareholders while promoting XRP's usability and acceptance. Notably, Ripple execs Brad Garlinghouse, Stuart Alderoty, and David Schwartz will serve as strategic consultants.
Garlinghouse stated that his firm has long advocated for XRP's utility as a global asset for efficient payment settlement around the world. He noted that the XRP treasury firm Evernorth supports that aim by delivering “more use cases, participation, and confidence to the XRP ecosystem.”
Larsen noted that Evernorth addresses a need in today's XRP capital markets and its use in DeFi devices. The Evernorth-Armada transaction is expected to completion in the first quarter of next year, subject to standard closing conditions and shareholder approval.
