Ripple-Backed Evernorth to Establish $1 Billion XRP Treasury

Evernorth has announced plans to go public and launch the largest XRP treasury as part of this transaction. The company expects to raise over $1 billion, which it will use to acquire the XRP tokens, with backing from Ripple and other major institutional investors.

Ripple-Backed Evernorth To Create Largest XRP Treasury

In a press release,  Evernorth announced that it expects to raise over $1 billion in gross proceeds, including $200 million from SBI, and additional investments from Ripple, Rippleworks, Pantera Capital, Kraken, and GSR. Ripple co-founder Chris Larsen has also invested in the company.

The company stated it will use the net proceeds to fund open-market purchases of XRP to build the world’s leading institutional XRP treasury. This comes after CoinGape reported last week that Ripple was planning to raise $1 billion for a firm that will hold XRP as its reserve asset through a special purpose acquisition company (SPAC).

Now, Evernorth has announced the execution of a business agreement with Armada Acquisition Corp II, which will enable it to go public. Upon completion of the transaction, both companies will operate under the Evernorth name and will trade on the Nasdaq under the ticker ‘XRPN.’

Meanwhile, CoinGape had also reported that Ripple was going to contribute some of its XRP holdings to the proposed XRP treasury. The crypto firm looks to have done so, having moved $500 million in XRP last week to a fresh account that has yet to set up a multi-sig.

‘First Of Its Kind Treasury Vehicle’

Evernorth stated that the company is designed to provide investors with “simple, liquid, and transparent exposure to XRP through a publicly listed vehicle.” The company plans to grow its XRP per share over time by deploying its holdings in institutional lending, liquidity provisioning, and DeFi yield opportunities.

Former Ripple executive Asheesh Birla will serve as the company’s CEO. Commenting on this move, Birla stated that they plan to provide more than just exposure to the XRP price but also contribute to the growth and maturity of the ecosystem by capitalizing on existing TradFi yield generation strategies and deploying their XRP treasury into DeFi yield opportunities.

He further noted that this approach will generate returns for shareholders while supporting XRP’s utility and adoption. Notably, Ripple’s executives Brad Garlinghouse, Stuart Alderoty, and David Schwartz are to serve as strategic advisors.

Garlinghouse noted that his firm has long championed XRP for its utility as a global asset for the efficient settlement of payments worldwide. He added that the XRP treasury firm Evernorth aligns with that mission, bringing “more use cases, participation, and confidence to the XRP ecosystem.”

Larsen stated that Evernorth fills the missing link in today’s XRP capital markets and XRP usage in DeFi products. The transaction between Evernorth and Armada is expected to close in the first quarter of next year, subject to customary closing conditions and shareholder approvals.