By When I first heard about Ripple’s XRP token treasury ripple buyback strategy through a new publicly traded firm called Evernorth, which aims to raise more than $1 billion, I’ll admit—I was skeptical. Another crypto treasury company? Haven’t we seen this playbook before with Strategy (formerly MicroStrategy) and Bitcoin?
But as I dug deeper into what’s actually happening here, I realized this isn’t just another corporate crypto bet. This is Ripple essentially creating institutional-grade infrastructure for XRP at a moment when digital asset treasury companies are facing cooler sentiment, with some beginning to trade at market caps below their net crypto asset values.
In this post, I’m going to walk you through everything I discovered about Ripple’s XRP treasury strategy, why it’s different from what’s come before, and what it could mean for the future of XRP and institutional crypto adoption.
The Core Problem This Solves: How do institutions gain regulated, liquid exposure to XRP without the complexity of direct custody, and how does Ripple create sustainable demand for its native token in an increasingly crowded digital asset treasury market?
What Exactly Is Happening With Ripple’s XRP Treasury? (Breaking Down the Evernorth Deal)
The $1 Billion SPAC Structure Here’s What I Found
After reviewing multiple sources, here’s what’s actually happening:
Evernorth will come together via a business combination with publicly traded special purpose acquisition company (or SPAC), Armada Acquisition Corp II. The deal, which is expected to close in Q1 2026, will provide net proceeds of greater than $1 billion that will primarily be used to purchase the Ripple-linked asset, XRP, on the open market.
Key Players Involved:
Leadership: Asheesh Birla, CEO of Evernorth, previously served as a senior executive at Ripple, where he was instrumental in building and scaling the company’s cross-border payments business.
Major Investors: $200 million from SBI Holdings, alongside investments from Ripple, Rippleworks, Pantera Capital, Kraken, and GSR, with participation from Ripple co-founder Chris Larsen.
Strategic Advisors: Ripple executives Brad Garlinghouse, Stuart Alderoty, and David Schwartz are expected to serve as strategic advisors.
What Makes This Different
According to my research, Evernorth is built to provide investors more than just exposure to XRP’s price. As it capitalizes on existing TradFi yield generation strategies and deploys into DeFi yield opportunities, it also contributes to the growth and maturity of that ecosystem.
Why I Believe This Is Different From Other Digital Asset Treasuries
The DAT Bubble Has Already Burst And Ripple Knows It
Here’s something crucial I discovered: Ripple is launching this treasury at a very specific moment in the DAT market cycle.
Ripple’s entry into the digital asset treasury (DAT) space comes at a time when the euphoria surrounding this business model, pioneered by Strategy’s Michael Saylor, has already peaked. In a stunning reversal, many DAT firms, including such prominent names as Metaplanet, are now trading below their net asset value.
The Current DAT Landscape:
According to CoinGecko’s Digital Asset Treasury Companies Report 2025, DATCo crypto holdings totaled $137.3 billion at the end of October 2025, more than double since the start of the year. Of the 142 DATCos, 113 (79.6%) hold Bitcoin as a treasury asset, compared to only 15 for Ethereum and 10 for Solana.
What This Tells Me:
XRP treasuries are basically uncharted territory. Unlike Bitcoin and Ethereum, XRP has attracted relatively little attention from DAT firms. However, there are still several names that have adopted the token as a treasury asset. These include VivoPower International, Webus International, Wellgistics Health, Trident Digital Tech, and some other minor players.
The Strategy vs. Evernorth Playbook Critical Differences I Found
| Metric | Strategy (Bitcoin) | Evernorth (XRP) |
| Primary Asset | Bitcoin (passive appreciation) | XRP (active yield + appreciation) |
| Yield Generation | None—relies solely on BTC price | TradFi yield generation strategies and DeFi yield opportunities |
| Ecosystem Participation | Limited | Validator operations, DeFi, and market development by providing liquidity |
| Market Timing | Entered during early DAT euphoria | Launching post-DAT bubble correction |
| Regulatory Status | General crypto exposure | XRP presents a compelling opportunity as one of the few digital assets with a recognized regulatory framework in the U.S. |
The Real Reason Ripple Is Doing This Now (It’s Not What You Think)
Ripple’s 4.7 Billion XRP Problem And How This Solves It
Here’s what really caught my attention: Ripple already holds more than 4.7 billion XRP, valued at roughly $11 billion, in its corporate wallets, with an additional 35.9 billion XRP locked in monthly escrow releases.
The Hidden Strategy:
By creating an independent public treasury vehicle, Ripple effectively:
- Creates sustainable demand without appearing to manipulate markets
- Provides institutional access through a regulated, familiar structure
- Signals long-term confidence to the market
According to CryptoSlate’s analysis, at current prices around $2.30, a $1 billion reserve equals about 435 million XRP, or roughly 0.75% of the 60 billion in circulation. An XRP treasury’s steady bid will help to fortify price floors and institutional confidence in the digital asset.
The GTreasury Acquisition Connection I Uncovered
Something fascinating: The firm on Thursday also announced the $1 billion acquisition of GTreasury, a corporate treasury software provider, positioning the deal as a bridge to finance chiefs and treasurers experimenting with tokenized deposits and stablecoins.
What This Tells Me:
Ripple isn’t just building an XRP treasury they’re building the infrastructure for corporate America to use crypto-native treasury solutions. The timing of these two $1 billion moves isn’t coincidental.
What The Market Data Actually Shows (My Deep Dive Analysis)
The Immediate Market Reaction I Tracked
I monitored XRP’s price action closely around the announcement dates. Here’s what I found:
On October 20, XRP surged by 6% in 24 hours, trading above $2.46, accompanied by a robust 50% increase in 24-hour trading volume, reaching $4.05 billion. This initial spike suggested a strong positive response to the news.
However, the days immediately following saw some retracement. On October 21, XRP dipped slightly to around $2.4228, a 2.89% decrease, with trading volume at $432.73 million.
My Interpretation:
The muted long-term price response tells me two things:
- The market is waiting for actual buying to commence (expected in 2026)
- Larsen’s large-scale sale of 50 million XRP might have overshadowed Evernorth’s positive news, leaving traders cautious
The Liquidity Problem Everyone’s Ignoring
Here’s a critical issue I discovered: Data from CoinMarketCap shows that XRP’s liquidity on major exchanges is considerably thinner than that of rival tokens like Solana and Ethereum. Across the ten largest spot venues, including Binance, Coinbase, Bybit, and Upbit, the combined ±2 percent order-book depth amounts to just around $51 million.
Why This Matters:
A $1 billion buying program in a market with $51 million order-book depth could have significant price impact which is exactly what Evernorth and Ripple likely want.
The Risks Nobody’s Talking About (What I’m Watching Closely)
The DAT Death Spiral Scenario
I need to be honest about the risks here. The 2025 market downturn revealed structural weaknesses tied to leverage, dilution, and reliance on continuous capital raises rather than operating strength in digital asset treasury companies.
What Happened to Other DATs:
By late December 2025, Strategy controlled 671,268 BTC, acquired at a total cost of approximately $50.33 billion, with an average purchase price of nearly $75,000 per Bitcoin. The model enabled rapid accumulation, but it also increased financial risk. Higher leverage and shareholder dilution became central concerns as Bitcoin prices turned volatile.
For Metaplanet: Japan-based Metaplanet executed the same Bitcoin-first treasury strategy, but at a faster pace and from a much smaller starting point. By late December 2025, Metaplanet held 30,823 BTC, positioning it as Asia’s largest corporate Bitcoin holder. That level of exposure left little room for error once market conditions shifted.
Why Evernorth Might Avoid This Fate My Hypothesis
Key Differentiators I Identified:
- Active Yield Generation: Unlike Bitcoin DATs that rely solely on price appreciation, Evernorth capitalizes on existing TradFi yield generation strategies and deploys into DeFi yield opportunities.
- Ecosystem Integration: Evernorth plans to deploy resources toward operating XRP validators to strengthen the resilience and decentralization of the ledger.
- Regulatory Clarity: Birla referenced the passage of the Genius Act, which offered much-needed stablecoin regulation and triggered an 18% sector growth shortly after approval. “Regulation has become a catalyst. When I started talking to investors this year, I saw a completely new class of institutions getting involved.”
Expert Opinions That Changed My Perspective
What Brad Garlinghouse Actually Said
Brad Garlinghouse, CEO of Ripple, stated: “Ripple has long championed XRP for its utility as a global asset for the efficient settlement of payments around the world. Evernorth is deeply aligned with that mission, bringing more use cases, participation, and confidence to the XRP ecosystem.”
The Strategy Comparison Analysts Are Making
According to crypto analyst Vincent Van Code, Evernorth’s XRP strategy mirrors MicroStrategy’s Bitcoin playbook, but with “legal transparency.” He praised Evernorth for registering its crypto accumulation plans openly, unlike MicroStrategy, which he mockingly described as “a failing software company hoarding a multi-billion-dollar BTC treasury.”
The Skeptic’s View I Had to Consider
Financial analyst Jim Chanos, the investor famous for shorting Enron prior to its collapse, predicted MicroStrategy’s premium would soon evaporate, dubbing the model “financial gibberish” before closing his position at a profit.
My Take: While Chanos was ultimately right about premium compression, the XRP treasury model has structural advantages (yield generation, ecosystem participation) that could differentiate it from pure Bitcoin accumulation strategies.
What This Means For XRP Holders (My Honest Assessment)
The Bull Case I’m Considering
The initiative could boost XRP Price by reducing the circulating supply and driving institutional demand. Funds will support DeFi and liquidity projects, expanding XRP’s real-world utility.
Potential Price Scenarios:
A decisive break above the $2.70-$3.00 range, especially with strong volume, could propel XRP towards $3.50 by late November and potentially $5 by year-end, contingent on sustained institutional interest and potential XRP ETF approval.
The Bear Case I Can’t Ignore
In a less favourable scenario, the treasury initiative may underperform if accumulation is slower than expected or if market sentiment turns sour. That could lead to only a temporary price bump, followed by consolidation or even drawdown if broader market stress appears or if investors question the strategy’s value-add.
The Actual Buying Timeline Everyone’s Missing
Here’s something critical: Funds will buy roughly 560 million XRP within 10 days of funding. Ultimately, Evernorth seeks to be the “MicroStrategy for XRP,” with purchases starting in 2026.
Why This Matters:
The real price impact won’t happen until Q1 2026 when the SPAC merger closes and buying begins. Current price action is purely speculative.
The Bigger Picture: What This Reveals About Crypto’s Future
The Shift From Bitcoin Only to Multi-Asset Treasuries
According to Jeffrey Janson, CFP and CBDA designee, four years ago, only 10 public companies held bitcoin in their treasuries. Fast forward to September 2025, and over 200 firms – 190+ focused on bitcoin and another 10-20 holding Ethereum or altcoins – collectively sit on over $464 billion in crypto assets.
The Trend I’m Seeing:
Recently, the DAT thesis is evolving with participation from more and more companies, with increasing allocations to altcoins, including ether (ETH) and Solana (SOL), as well as ecosystem-specific tokens tied to trending narratives such as decentralised AI and decentralised finance.
Why Institutional Demand Patterns Are Changing
According to industry analysis, regulatory frameworks like the U.S. GENIUS Act and EU MiCA have accelerated institutional adoption, with 86% allocating capital to digital assets via preferred shares and DAT strategies in 2025.
What This Means:
The institutional infrastructure for crypto is finally maturing beyond Bitcoin. XRP, with its regulatory clarity, is positioned to benefit from this shift.
My Final Verdict: Should You Care About This?
Three Scenarios I’m Preparing For
Best Case: Evernorth successfully deploys $1B+ into XRP, creates sustainable yield, attracts copycat treasuries, and XRP becomes the institutional altcoin of choice alongside ETH. Price: $5-8 by the end of 2026.
Base Case: Evernorth completes the SPAC, provides moderate buying pressure, generates modest yields, and XRP trades in a $3-4 range with increased institutional participation but no major breakout.
Worst Case: SPAC deal falls through or faces regulatory delays, market conditions deteriorate further, and the initiative joins other failed DAT experiments. XRP returns to the $1.50-2.00 range.
What I’m Watching Before Making Any Moves
- Q1 2026 SPAC Closure: Does the deal actually complete?
- Initial Buying Program: How does the market absorb the first wave of purchases?
- Yield Generation Metrics: Can Evernorth actually deliver on DeFi yields?
- Competitive Response: Do other companies launch XRP treasuries?
- Regulatory Developments: Any changes to XRP’s regulatory status?
Conclusion: The Question That Keeps Me Up At Night
Here’s what I keep coming back to: Is Ripple creating genuine institutional infrastructure for XRP, or is this an elaborate attempt to create sustainable demand for tokens it already owns in massive quantities?
Honestly? I think it’s both.
Ripple co-founder Chris Larsen contributed 50 million XRP to Evernorth, and Evernorth’s strategy is designed not only to accumulate XRP as a reserve asset but also to act as a long-term catalyst for the adoption and institutionalization of the XRP Ledger.
My Takeaway:
Whether you’re bullish or bearish on XRP, Evernorth represents the most significant institutional infrastructure development for the token in its history. The success or failure of this XRP token treasury ripple buyback experiment will likely determine whether XRP becomes a multi-trillion-dollar settlement asset or remains a perpetual “could-have-been” in crypto history.
I’m watching closely. You should too.
What do you think? Is Ripple’s XRP treasury the next MicroStrategy, or the next cautionary tale? Drop your thoughts in the comments.