San Francisco — Digital assets and blockchain firm Ripple announced on Wednesday that it has raised $500 million in funding, boosting its valuation to $40 billion. The round comes as Ripple broadens its product base beyond payments and continues a series of acquisitions.
The funding was led by affiliates of Fortress Investment Group, Citadel Securities, Pantera Capital, Galaxy Digital, Brevan Howard, and Marshall Wace. Ripple, closely associated with the XRP cryptocurrency, said the round reflects the strategic value of partnering with institutional investors whose expertise complements Ripple’s expanding suite of products.
Record Year of Growth
Monica Long, Ripple’s president, told CNBC that the company did not need to raise funds, but institutional investors expressed strong interest in participating.
“We think it makes good sense to have them as strategic partners, as investors who will have a hand toward building the future,” Long said.
Ripple initially launched in 2012, using blockchain to facilitate cross-border payments, with XRP enabling rapid fiat currency transfers. Since then, the company has expanded into new areas, completing six acquisitions in just over two years and launching a USD-pegged stablecoin backed by real-world assets. This year, Ripple acquired Rail, an enterprise-focused stablecoin platform.
Beyond payments, Ripple now offers crypto custody, prime brokerage, and corporate treasury management, reflecting its ambition to position itself as a fintech firm serving institutional clients.
“We will continue to look at where new opportunities arise in those two things — complementing our core payments business or pushing into new areas,” Long said.
No IPO Plans for Now
Unlike other crypto companies such as Circle, Ripple has no immediate plans to go public.
“We are not focused on an IPO right now. We have the balance sheet, the liquidity to be growing and making moves on M&A and other big strategic partnerships,” Long said.
Market Context
The funding comes amid volatile cryptocurrency markets, with bitcoin recently dipping below $100,000 for the first time since June, wiping billions off global market value. Despite this, Ripple’s expansion and institutional backing signal continued confidence in its long-term strategy.