Ripple reaches USD40b valuation with Fortress, Citadel-led investment

The news: Ripple raised USD500 million ($770 million) in a “strategic investment” led by funds affiliated with Fortress Investment Group and Citadel Securities, the financial technology company said in a statement Wednesday.

The numbers: The round values Ripple at USD40 billion and follows its recent USD1 billion tender offer at the same valuation, the company said, “underscoring continued confidence in the company’s growth trajectory and long-term vision.”

The context: Fortress and Citadel were joined by Pantera Capital, Galaxy Digital, Brevan Howard and Marshall Wace, in the round, which Ripple said will be used to bolster its expansion into custody, stablecoins and prime brokerage services. The expansion will cater to growing institutional interest to participate in the digital asset space, particularly in the wake of the US’ GENIUS Act which established a regulatory framework for stablecoins.

Ripple said its volumes have now surpassed USD95 billion across its blockchain network and that its US-dollar backed stablecoin, RLUSD, crossed a USD1 billion market cap this week - less than a year since launch.