- Nevada-registered Evernorth plans to acquire $1 billion for its XRP-focused digital asset treasury strategy.
- The company aims to become the largest institutional holder of the token.
Evernorth (XRPN) is a newly formed Nevada corporation, but it’s already making waves in the crypto community, especially in the XRP circle. On Monday, the company focused on accelerating XRP adoption on an institutional scale announced raising $1 billion to jumpstart its business.
In a press release, Evernorth disclosed the execution of its business combination agreement with Armada Acquisition Corp II (AACI), a publicly traded special purpose acquisition company. The merger would allow the combined entity to operate under the Evernorth name. It’s initial move would be to raise over a billion dollars in gross proceeds from its public launch.
The figures include a $200 million injection from the SBI Group. Ripple will also pitch in with additional investments as well as Rippleworks, Pantera Capital, Kraken, and GSR Markets. Additionally, the company revealed the participation of Ripple co-founder Chris Larsen in the venture.
Evernorth explained that the proceeds of the fundraise will primarily fuel its open-market purchases of XRP. Its goal is to build the world’s largest institutional XRP treasury. Meanwhile, the rest will be allocated to the business’s working capital, transaction expenses, and other general corporate purposes.
How the Evernorth Treasury Vehicle Works
Evernorth highlighted that its business centers on providing investors a simple, liquid, and transparent exposure to XRP via a publicly listed vehicle. However, it stands out from other passive exchange-traded funds (ETFs) because it reinforces its XRP per share growth over time through yield accumulation.
The company plans to achieve this by participating in interest-generating or yield-bearing decentralized finance (DeFi) activities, such as lending and liquidity pool provisioning.
A Huge Boost for XRP Adoption
Evernorth CEO Asheesh Birla emphasized that XRP is already well-positioned for adoption as it has a resilient infrastructure with zero downtime, rapidly growing ecosystem, and regulatory compliant mechanisms. Nonetheless, Evernorth’s combination of tested-and-proven traditional finance (TradFi) yield generation strategies and DeFi yield opportunities will amplify its maturity.
Moreover, Ripple CEO Brad Garlinghouse expressed his support on Evernorth and its CEO’s efforts to expand XRP’s use cases.
Why This is Huge News for XRP
Beyond expanding the institutional use case of XRP, the latest development could help absorb the new circulating supply of XRP from Ripple escrow unlocks. While Ripple typically re-locks a significant portion of the unused XRP, the public’s perception of continuous supply pressure remains a psychological headwind affecting market sentiment and the asset’s price. Evernorth’s strategy could practically balance things out as it injects significant demand at a more regular interval.
Furthermore, Evernorth’s regulated public listing as a major, institutional-grade digital asset, solidifyies the asset’s standing in the evolving global financial ecosystem.
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