- Wellgistics Health wants to use its XRP reserve to create sustainable income streams.
- The company will be the first publicly traded pharmaceutical company to adopt XRP.
- XRP whales have purchased over 280 million coins in the last ten days, signaling growing interest.
Wellgistics Health, Inc. (NASDAQ: WGRX), a Florida-based pharmaceutical distribution and healthcare infrastructure company, filed with the U.S. SEC to adopt Ripple Labs’ XRP for treasury management. Earlier in May, Wellgistics Health announced a $50 million Equity Line of Credit (ELOC) from LDA Capital to facilitate the adoption of XRP for treasury.
The company aims to become the first publicly traded company in the U.S. healthcare sector to adopt XRP as a treasury reserve. According to the form S-1 filed with the SEC, Wellgistics Health will issue debt securities or other forms of capital to strengthen its XRP holdings over time.
The company also wants to implement a blockchain payment solution by tapping into XRPL over time. Moreover, Wellgistics Health wants to use its XRP holdings as loan collateral to strengthen its financial position.
Top Reasons Why Wellgistics Health Opted for XRP
The adoption of XRP as a treasury management tool by Wellgistics Health is primarily influenced by the XRPL’s robust fundamentals. The pharmaceutical company will significantly benefit from XRPL’s low transaction cost at a fraction of a second and at scale.
The XRP market has grown rapidly, bolstered by clear regulatory frameworks and mainstream adoption of XRPL. The recent passage of the GENIUS Act in the United States will have a profound impact on the XRPL network, which has the Ripple USD (RLUSD) as the native stablecoin.
How the Reserve Adoption Will Benefit the Underlying Value
The adoption of XRP as a reserve management tool by Wellgistics Health will have a profound market impact on the underlying value. Furthermore, Wellgistics Health will eventually influence other companies to adopt XRP, especially if its stock market performance mirrors that of Strategy and Metaplanet in the Bitcoin (BTC) sector.
The rising adoption of XRP will reduce its overall circulating supply. Furthermore, payment transactions on the XRPL network facilitate XRP burns.
Midterm Expectations
The wider altcoin market, led by XRP, has been experiencing a mid-term correction. According to market data from Coingecko, the total crypto market cap slipped 5% in the past 24 hours to hover about $3.84 trillion.
In the past seven days, the XRP price dropped 15.5% to trade at about $3.06 on Friday, July 25. It has a fully diluted valuation of around $306 billion and a 24-hour average trading volume of about $11 billion.
However, according to Santiment data from crypto analyst Ali, whale investors, with an account balance of between 10 million and 100 million coins, have accumulated over 280 million XRP in the past 10 days and now hold 8.24 billion coins.
Related: XRP Eyes Major Breakout: Will It Conquer ‘The Chasm’?
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Source: https://coinedition.com/wellgistics-health-files-to-use-xrp-for-treasury-cites-xrpl-efficiency/