Brad Garlinghouse, CEO of Ripple, speaks at the 2022 Milken Institute Global Conference in Beverly Hills, California, U.S., May 4, 2022.
Mike Blake | Reuters
Digital assets and infrastructure company Ripple said Wednesday it has raised $500 million in funding, lifting its valuation to $40 billion.
The fundraise comes after a slew of acquisitions and as the company expands its product base beyond just payments.
Crypto and digital asset companies are trying to take advantage of what is seen by the industry as a more favorable environment in the U.S. after the election of President Donald Trump and the passing of a landmark stablecoin law known as the GENIUS Act.
Ripple, which is closely linked to the XRP cryptocurrency, said the funding round was led by funds managed by affiliates of Fortress Investment Group, affiliates of Citadel Securities, Pantera Capital, Galaxy Digital, Brevan Howard, and Marshall Wace.
‘Record year of growth’
“The decision to accept $500 million in new common equity reflects the strategic value of deepening relationships with financial partners whose expertise complements Ripple’s expanding global suite of products,” Ripple said, adding that it is continuing its “record year of growth.”
Ripple has looked to position itself as a fintech firm bringing crypto and digital assets technology to institutional clients.
When Ripple launched in 2012, the company initially focused on using blockchain technology to facilitate cross-border payments. The token XRP was used to move fiat currencies quickly.
Since then, Ripple has bolstered its payments business and expanded into new areas through aggressive acquisitions. In just over two years, Ripple said it has completed six acquisitions.
Last year, the company launched its own stablecoin, a type of digital currency pegged to the U.S. dollar and backed by real-world assets. Stablecoins are seen as a key way to move money quickly around the world as they can operate 24 hours a day. This year, Ripple acquired an enterprise-focused stablecoin platform called Rail.
Beyond payments, Ripple has pushed into other lines of business including custody of crypto assets, prime brokerage and corporate treasury management.
Ripple’s funding comes as cryptocurrency markets remain volatile. This week, bitcoin fell below the $100,000 mark for the first time since June with billions of dollars being wiped off the overall market.
