Ripple secures $500 million in bold investment, offering Wall Street a guaranteed 10% annual return

Source: BlockMedia Original Title: Ripple Guarantees 10% Annual Return to Wall Street ⋯ Attracts $500 Million in Bold Investment Original Link: Ripple has attracted funds from major Wall Street investors by selling approximately $500 million in equity. This deal values Ripple at $40 billion and is notable for being structured as a virtually “risk-free investment” with strong investor protection clauses.

Ripple recently secured funds from key investors such as Citadel Securities, Fortress Investment Group, Brevan Howard, Galaxy Digital, Marshall Wace, and Pantera Capital through a $500 million equity sale. With this deal, Ripple’s corporate value was estimated at about $40 billion (approximately KRW 58.8 trillion).

The investment reportedly comes with thorough safeguards. Investors received put options allowing them to sell their shares back to Ripple in 3–4 years, with an annual 10% return guaranteed. If Ripple wants to buy back the shares, it must offer a 25% annual return. The agreement also includes a liquidation preference, ensuring new investors are paid back first in the event of a company sale or bankruptcy.

Thanks to these terms, the deal is considered “almost a risk-free investment.” Wall Street investors have secured an opportunity to enter early into Ripple’s growth potential while minimizing risk.

Ripple’s motivation for offering such favorable terms is seen as preparation for a public listing and building institutional trust. Ripple’s corporate value still heavily depends on its holdings of XRP. Most XRP is either locked or being released to the market gradually. By offering strong protection clauses, Ripple has succeeded in attracting cautious institutional capital.

XRP’s role as a settlement and liquidity asset is also expanding. XRP reportedly now accounts for about 8% of all digital asset payment gateway transactions. This shows increasing use of XRP as an international settlement and liquidity solution.

Ripple is strengthening its position as a global payment infrastructure player—not only partnering with banks and payment providers but also leveraging the XRPL in Mastercard’s payment pilot program.