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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 has raised $500 million from several investors in its latest round of funding, which cements the high 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 pressure.
Other investors include hedge fund Brevan Howard and crypto venture capital firms Pantera and Galaxy Digital.
While Ripple is best known for its XRP (XRP) token, used to facilitate fast and low-cost cross-border payments in its XRP Ledger, the company has increasingly pivoted towards the development of stablecoins. The Financial Times highlighted Ripple’s work in this area as a potential key driver behind the latest round of investment.
As Cointelegraph recently reportedRipple’s RLUSD stablecoin has climbed into the top 10 stablecoins denominated in US dollars 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 growing institutional adoption of blockchain technology. Many crypto-native companies, including circle, GeminiBullish it is Image Technology Solutionsmade strong debuts as publicly traded companies this year, reflecting renewed investor confidence in the sector.
Meanwhile, BlackRock reported significant increase in income from its crypto exchange-traded funds (ETFs), which underline the expanding appetite for exposure to digital assets 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 project and the continued progress towards it. comprehensive legislation of the US market structurewhich aims to provide clearer rules for digital assets.
Related: Citi sees stablecoin payments through new partnership with Coinbase
