VivoPower eyes $300M Ripple stake as XRP-linked exposure nears $1B

VivoPower is seeking Ripple-linked assets through a joint venture to secure hundreds of millions of dollars in Ripple Labs shares, giving investors indirect exposure to close to $1 billion worth of XRP.

According to the Nasdaq-listed company’s press statement released Tuesday, its digital asset arm, Vivo Federation, entered into a definitive joint venture agreement with Lean Ventures, a licensed South Korean asset manager headquartered in Seoul. 

The agreement will see Lean Ventures arrange the creation of a dedicated investment vehicle to acquire and hold an initial target of $300 million worth of private Ripple Labs shares. The vehicle is reportedly meant for institutional and qualified retail investors in the XRP-favored South Korean crypto market.

VivoPower said Lean Ventures has already canvassed interest among potential investors in the country. That outreach may include K-Weather, a South Korean firm that entered into a heads-of-agreement with VivoPower in early November to acquire an initial 20% stake. The sustainable energy B corporation told reporters it is in the final stages of due diligence on that transaction.

VivoPower Lean Ventures’ joint venture plan for XRP-linked exposure 

In its statement, VivoPower explained that the proposed investment vehicle will not directly purchase XRP tokens, although it will hold equity in Ripple Labs, whose business and balance sheet are affiliated with the XRP ecosystem. 

Based on current XRP prices, VivoPower estimates that the planned $300 million Ripple Labs share position is equivalent to roughly 450 million XRP tokens, which could translate to a valuation of about $900 million at prevailing market conditions.

Lean Ventures is expected to source the Ripple Labs shares through Vivo Federation. VivoPower said it has already received approval from Ripple to acquire an initial tranche of preferred shares and is negotiating for more purchases from existing institutional shareholders.

Traidman continued to say that the vehicle will help South Koreans acquire Ripple Labs shares and, by extension, XRP at a discount. “With this dedicated investment vehicle, qualifying South Korean institutional and retail investors can gain exposure to Ripple Labs shares and, in turn, XRP at a material discount to the spot price,” he concluded.

Managing partner of Lean Ventures Chris Kim reiterated that the demand for such exposure has been building over the years, owing to the growing appetite South Korea has for Ripple’s products.

In June, VivoPower raised $121 million in a private placement led by Saudi investor Abdulaziz bin Turki Abdulaziz Al Saud. The funding made the company one of the first listed firms to base its treasury on XRP instead of popular choices Bitcoin or Ether.

The energy solutions firm has deployed XRP into yield-generating structures, including a $100 million allocation through Flare’s FAssets system, and has also adopted Ripple’s RLUSD stablecoin for its treasury operations.

Ripple expands footprint in Asia and Europe

Away from VivoPower’s XRP treasury and Ripple Labs stock ambitions, SBI Ripple Asia signed a memorandum of understanding with Doppler Finance on Wednesday to become an institutional custodian of the token’s segregated custody for its clients’ assets.

SBI Ripple Asia, which is regulated by Singapore’s Monetary Authority, said it would add XRP-based yield products and real-world asset tokenization on the XRP Ledger as part of the collaboration. 

An SBI Ripple Asia spokesperson said the partnership could speed up the development of secure and transparent yield infrastructure on the XRPL by combining Doppler’s on-chain framework with SBI’s experience in digital asset adoption for Asian markets.

Cryptopolitan also reported earlier this week that Ripple has partnered with Amina Bank AG, a Swiss institution regulated by the Swiss Financial Market Supervisory Authority. Amina Bank will become the first European bank to use Ripple’s licensed end-to-end payments network. 

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