Blockchain payments company Ripple has been valued at $40 billion following new equity investments from Citadel Securities and Fortress Investment Group, underscoring the growing appeal of blockchain technology among mainstream financial institutions.
According to a Financial Times report on Wednesday, Ripple raised $500 million from several investors in its latest funding round, which cemented the lofty valuation. The deal signals a broader shift as established Wall Street firms move to gain exposure to the digital payments and blockchain sector despite ongoing market pressures.
Other investors included hedge fund Brevan Howard and crypto-focused venture capital companies Pantera and Galaxy Digital.
While Ripple’s technology leverages the XRP Ledger (XRPL) — an open-source, decentralized blockchain that utilizes the XRP (XRP) token for cross-border payments — the company itself is a separate entity. The Financial Times highlighted Ripple’s ongoing work around stablecoins as a potential key driver behind the latest investment round.
As Cointelegraph recently reported, Ripple’s RLUSD stablecoin has climbed into the top 10 US dollar-denominated stablecoins less than a year after its launch.
Related: Ripple seeks to buy $1 billion XRP tokens for new treasury: Report
Institutional interest in crypto continues to grow
Ripple’s latest fundraising round is part of a broader trend of increasing institutional adoption of blockchain technology. Several crypto-native companies, including Circle, Gemini, Bullish and Figure Technology Solutions, have made strong debuts as publicly listed companies this year, reflecting renewed investor confidence in the sector.
Meanwhile, BlackRock has reported significant income growth from its crypto exchange-traded funds (ETFs), underscoring the expanding appetite for digital asset exposure among traditional investors.
Elsewhere, Goldman Sachs and BNY Mellon have entered the tokenization market, offering institutional clients access to tokenized money market funds and other blockchain-based financial products.
This wave of growth has been supported by a more favorable regulatory climate, including the passage of the GENIUS stablecoin bill and ongoing progress toward a comprehensive US market structure legislation, which aims to provide clearer rules for digital assets.
Related: Citi eyes stablecoin payments through new partnership with Coinbase
