- XRP could become a treasury asset soon with VivoPower’s plan to buy $121 million worth of XRP tokens.
- The Nasdaq-listed firm’s announcement was followed by Chinese mobility startup Webus’s plan to set up a $300 million XRP reserve.
- XRP gains nearly 3% on Tuesday, back above $2.25.
XRP sees rising adoption by institutions. XRP is following in the footsteps of Bitcoin as a reserve asset with announcements like VivoPower International’s $121 million plan to buy the altcoin. The Nasdaq-listed firm revealed plans to transform the company into an XRP-focused digital asset enterprise, the first of its kind worldwide.
XRP rises sharply on Tuesday, posting its fourth consecutive sessionwith gains. Catalysts like the Securities and Exchange Commission’s (SEC) lawsuit against Ripple and the regulator’s pending decision on the XRP Exchange Traded Fund (ETF) are likely influencing the altcoin this week.
VivoPower’s $121 million strategic XRP bet and Webus announcement
US President Donald Trump’s strategic crypto fund announcement, which included made in USA tokens like XRP, Solana (SOL), Cardano (ADA), in addition to Bitcoin (BTC) and Ethereum (ETH), inspired institutions to look into adding these alternative coins to their treasury.
The first Nasdaq-listed corporation to debut XRP as a treasury asset is VivoPower International. Following a $121 million fund raise from Saudi Arabian royalty and Adam Traidman, former Ripple Board member and CEO of SBI Ripple Asia, the firm is set to differentiate itself from Michael Saylor’s Strategy and Japan’s Metaplanet, which make bullish bets limited to Bitcoin.
According to the official press release, Adam Traidman has joined the board of advisors as Chairman.The public company is developing a decentralized finance strategy focused on XRP. The release outlines a plan to buy and hold the altcoin, build a treasury and a DeFi team to reduce debt and working capital.
FXStreet has reached VivoPower for comments on pivoting their strategy and adopting XRP as a reserve asset, awaiting a response.
The $121 million fund raise news was followed by headlines citing an agreement between Chinese mobility startup Webus and fund manager Samara Alpha for a $300 million XRP treasury management agreement.
Webus executives note that once operational needs and funding align, XRP will be added to the treasury and managed by Samara Alpha, per the official release.
The bullish developments have fueled speculation among derivatives traders, however traders betting on XRP price gains are consistently getting punished. Data from Coinglass shows higher long liquidations, relative to shorts, throughout May and the first two days of June 2025.
Why XRP bulls are getting punished for price rally expectations
Coinglass data shows that derivatives traders with long positions in XRP have consistently faced higher liquidations compared to their bearish counterparts. The liquidation data shows the trend was sustained throughout May 2025 and started on April 24.
XRP total liquidations chart | Source: Coinglass
On May 30, over $30 million in long positions were liquidated, against $586,000 in short positions.
It is likely that XRP price is influenced by catalysts like SEC vs. Ripple lawsuit developments, the new court filing and other factors like declining activity on XRPLedger.
SEC vs. Ripple lawsuit: New filings, more drama?
The SEC vs. Ripple lawsuit has a new filing from an individual previously accused of acting as an unregistered penny stock dealer, as of May 28. Pro-crypto attorneys and XRP holders closely following the lawsuit and new filings were surprised by the “decisive evidence” presented by Justin W. Keener.
In his five-page letter, Keener presents
- An analysis and commentary on the application of the Howey Test
- Defines and questions what qualifies as a security or an investment contract and the mathematics of the legal fees and fines imposed on Ripple by the court
- Describes his own tussle with the SEC, where he spent $15 million to defend himself when accused of being an “unregistered penny stock dealer”
among other details shared in the filing.
Keener argues that he has presented only part one of the evidence in the letter dated May 21 and, if granted leave to present the rest of the information, he can bring forth more previously unseen evidence for the American people and those invested in the lawsuit’s progress.
SEC v. Ripple lawsuit Keener’s filing | Source: Court Listener
Pro-crypto attorney Bill Morgan criticized Keener’s filing and labeled it as “An individuals multi-page rant against the Howey test, its interpretation by the courts, particularly in relation to the term investment contract and against the SEC covering a period of 90 years,” in a post on X.
Morgan says he expected a status report, given that the two parties (Ripple and SEC) are required to file one within the 60-day period, which expires on June 16.
Attorney Morgan’s tweet | Source: X
The filing comes at a time when Ripple’s Chief Legal Officer, Stuart Alderoty, and Ripple’s legal counsel, Sameer Dhond, submitted an additional letter to the SEC’s crypto task force and addressed a key question from SEC Commissioner Hester Peirce’s “New Paradigm” speech on what separates a digital asset from an investment contract.
Ripple CLO’s tweet | Source: X
While the courtroom drama ensues, XRPLedger has observed a decline in activity on its blockchain. This is the other key catalyst influencing the native token XRP and its price trend.
XRPLedger activity slips to lowest level since October 2024
Data from XRPScan shows that the XRPLedger, the decentralized public blockchain where XRP is the native token, recorded a serious decline in activity, measured by transaction count. The chart that records the number of transactions executed on the XRPLedger shows a little over 830K transactions on Tuesday, at the time of writing.
The last time the transaction count was this low was October 26, when a little over 54K transactions were executed on the XRPLedger.
Number of transactions executed on the XRPLedger | Source: XRPScan
The latest CoinShares Digital Asset Weekly Flows report, published on June 2, shows XRP-focused investment funds observed $28 million in outflows last week, the largest recorded outflow compared to Bitcoin and altcoins. The declining transaction count, coupled with a rise in institutional capital outflow, typically fuels a bearish sentiment among XRP traders and builds a bear case for the second-largest altcoin.
Exclusive: Expert commentary on rising speculation and XRP’s role as a treasury asset
James Toledano, Chief Operating Officer at Unity Wallet told FXStreet in an exclusive interview that VivoPower’s move to adopt XRP as a treasury asset is an unconventional one. Toledano stressed the fact that historically, the altcoin has not been viewed as a store of value.
Toledano said:
“ Bitcoin is the default choice for companies exploring crypto as a treasury asset due to its widespread recognition and established role as a store of value. That said, it [the adoption of XRP as a treasury asset] points to growing interest and adoption of corporations seeking other ways to shore up their finances outside of the centralized system — a win for DeFi, no doubt.”
Toledano believes that VivoPower’s initiative could, in theory, “validate XRP’s institutional appeal amid the SEC’s review of the spot XRP ETF application.”
The Unity Wallet executive concludes,
“While Bitcoin is likely to remain the primary asset for treasury allocation in the near term, it will be interesting to see how this decision pans out and whether it encourages more diversity in corporate crypto holdings.”
As XRP sees a rise in speculation across derivatives exchanges, open interest climbed over the weekend. Analyzing the trend, Ryan Lee, Chief Analyst at Bitget Research, told FXStreet in a written note:
“XRP’s open interest has surged to nearly $5 billion, indicating increasing speculative activity as traders take sizable positions in the derivatives market. This spike suggests strong potential momentum, with market participants bracing for a decisive move.
Tight consolidation in XRP’s price, often a precursor to breakout scenarios, combined with persistent spot buying pressure points to the potential for an upside move, especially if short sellers are caught off guard. Historical patterns in XRP trading reinforce this possibility, as similar setups have led to sharp rallies in the past. However, the direction remains far from guaranteed.”
Lee remains unbiased and notes that elevated open interest could steer volatility in either direction, in the absence of a clear catalyst. Lee warns traders of the potential impact of higher volatility. The analyst says,
“A bullish surge may trigger a short squeeze, while an influx of profit-taking or macro-driven risk-off sentiment could fuel liquidations and downside pressure. Investors should closely monitor external catalysts, including progress on XRP Ledger (XRPL) development or potential ETF-related momentum, which could shape near-term price action.”
