The reserve will be funded through stock issuance and other financial instruments, according to the announcement.
Trident Digital Tech Holdings, a Web3 company based in Singapore, said it will start an XRP treasury of up to $500 million. By doing so, the company joins a host of others that have, since May, announced reserves of the Ripple-created cryptocurrency.
“This initiative reflects our belief in the transformative potential of blockchain technology for capital allocation and cross-border value transfer,” Soon Huat Lim, founder and CEO of Trident, said in a statement. “Through this initiative, Trident aims to demonstrate how public companies can thoughtfully and responsibly participate in the ongoing development of decentralized finance.”
Rather than a simple buy-and-hold strategy, Trident plans to use its XRP reserves to generate yield through the deployment of staking mechanisms and have a “deep engagement” within the Ripple ecosystem, according to the announcement. The start of the XRP reserve will occur in the second half of 2025, dependent on regulation and market conditions.