VivoPower Worldwide (VVPW), the Nasdaq-listed firm transitioning right into a digital asset treasury play, has plans to place $100 million value of XRP
tokens to work.
The agency introduced Wednesday it has partnered with layer-1 blockchain Flare
to deploy $100 million XRP to generate yield on its treasury holdings.
The initiative marks the primary large-scale use of Flare’s FAssets system, which permits non-smart contract tokens like XRP to work together with decentralized finance (DeFi) protocols, the press launch stated.
VivoPower plans to generate yield by means of Flare-native protocols equivalent to Firelight and reinvest the earnings to develop its XRP holdings. The corporate stated it’s going to additionally undertake fee agency Ripple’s RLUSD stablecoin as its cash-equivalent reserve.
“It’s now not sufficient to easily maintain XRP; the responsibility to our shareholders is to make it productive,” CEO and government chairman Kevin Chin stated in a press release. “Adopting Ripple’s RLUSD is a cornerstone of this technique, offering the steadiness and compliance this next-generation treasury calls for.”
For Flare, the deal is a milestone of institutional validation, Flare co-founder Hugo Philion identified. “Our FAssets system […] is greater than only a bridge; it’s a gateway that permits establishments to convey belongings like XRP into programmable DeFi environments to generate yield, all whereas retaining their elementary safety,” he stated.
VivoPower is a part of the rising roster of public corporations elevating cash to buy and add digital belongings to their treasuries, a playbook popularized by Michael Saylor’s Technique (MSTR) that has develop into the most important company holder of bitcoin
.
The agency’s newest transfer comes shortly after tapping BitGo’s over-the-counter buying and selling desk for buying an preliminary $100 million trench of XRP tokens.
VivoPower final month stated that it entered into an settlement for a $121 million personal share placement, with the fundraising led by Saudi Prince Abdulaziz bin Turki Abdulaziz Al Saud, chairman of Eleventh Holding Firm, in accordance with a SEC submitting.
