A fresh wave of speculation is electrifying the XRP community following a Bloomberg report that Ripple Labs is seeking to lead a massive fundraising round, aiming to secure up to $1 billion to purchase XRP tokens. While unconfirmed by the company, this move has prompted a key question from analysts: why raise new capital instead of simply using the billions of XRP held in the company’s well-known escrow accounts?
One prominent XRP community figure, Nietzbux, has stepped forward with a compelling, albeit speculative, theory that suggests the public’s understanding of Ripple’s escrow holdings might be incomplete.
Riding the Wave of Corporate XRP Treasuries
Ripple’s reported plan aligns with a growing trend among forward-thinking corporations. Establishing a dedicated “XRP treasury” is becoming a recognized strategy for portfolio diversification and gaining exposure to the digital asset ecosystem.
This trend was recently highlighted by CoinDesk’s coverage of VivoPower, which successfully raised $19 million specifically to expand its XRP holdings. They are not alone; other firms like Everything Blockchain and Trident Digital have also publicly announced plans to establish their own XRP treasuries. If Ripple, the very architect of the XRP Ledger, is now formally creating its own treasury, it could serve as a powerful vote of confidence, potentially validating the strategy for the broader market.
The Billion-Dollar Question: Why Not Use the Escrow?
This ambitious fundraising effort, however, presents a logical puzzle. Ripple’s escrow wallets are famously known to hold approximately 35 billion XRP, released on a predetermined schedule. If the goal is to amass a treasury, why not simply allocate a portion of these already-owned tokens? Why go through the complex process of raising external capital to buy what the company, in a sense, already possesses?
Nietzbux acknowledges this community-wide confusion and offers a thought-provoking explanation. He points to a long-standing theory within the XRP ecosystem: the “pre-allocation theory.”
Nietzbux’s Theory: The “Escrow Illusion”
The core of Nietzbux’s speculation is that Ripple’s escrow may not be the untapped reservoir it appears to be. The pre-allocation theory suggests that Ripple has already entered into private agreements with institutional partners, effectively pre-selling significant portions of the escrowed XRP.
As Nietzbux posits, “Maybe the pre-allocation theory is correct and Ripple has less XRP in the escrow than the public thinks.” In this scenario, the escrow balance, while technically correct on the ledger, could represent tokens that are already legally committed to other entities. Therefore, Ripple’s liquid, unencumbered XRP supply might be far lower than the on-paper total.
This would provide a clear motive for the $1 billion fundraising effort: it’s not about acquiring more XRP, but about building a truly liquid and discretionary corporate treasury with newly purchased tokens, free from any pre-existing obligations. It’s worth noting, however, that the original Bloomberg report suggested that Ripple might use a combination of escrowed tokens and new capital, indicating a hybrid approach.
While this theory remains unproven, it offers a plausible rationale behind Ripple’s potentially groundbreaking financial strategy. The move continues to be dissected by the community, with many awaiting an official statement from Ripple that could either confirm the fundraising or shed light on its long-term treasury management goals.
