Why are More Companies Building an XRP Reserve?

The growing trend of public crypto treasuries has sparked a race among altcoins. Each one vies to be the top choice for companies and institutions looking to establish strategic reserves.

In this race, the XRP community offers several arguments highlighting XRP’s superiority. What are those arguments? This article dives in and explains.

More Companies are Listing XRP as a Treasury Asset

Recently, Webus International, a China-based company, filed Form 6-K with the U.S. Securities and Exchange Commission (SEC). The filing confirmed a plan to build a $300 million strategic reserve focused on XRP.

Webus is not alone. VivoPower International also announced a $121 million XRP reserve plan. Meanwhile, Wellgistics has invested $50 million in XRP.

According to a recent report from BeInCrypto, VivoPower also plans to acquire $100 million worth of XRP through BitGo’s over-the-counter (OTC) desk.

The list keeps growing. Other companies such as Ault Capital Group (ACG), BC Bud Corporation (BCBC), Worksport (WKSP), and Remixpoint have all made similar moves.

These actions suggest that large companies worldwide increasingly view XRP as a strategic financial reserve asset.

What Drives Businesses to Choose XRP for Strategic Reserves?

Companies choose Bitcoin as a strategic reserve because they believe in its value-storing capability during inflation. But what motivates them to select altcoins instead?

Altcoins are more volatile and often depend heavily on the transparency and actions of their development teams.

Each altcoin offers a unique value proposition. XRP’s supporters believe they have solid reasons to trust it.

Austin King, co-founder of OmniFDN, suggests that companies might want to integrate XRP into their international payment systems.

They believe XRP’s fast transaction speed and low cost make it ideal for cross-border payments. This could help businesses improve financial efficiency and enhance transparency in global services, like Webus’s ride-hailing platform.

“Most people will see this and think it’s primarily about price speculation, but that’s not really the key thing that is happening here — the real strategy here is to latch onto these rapidly growing crypto networks to share in their growth,” said Austin King.

Analyst Pumpius offers another perspective. He believes this is not just speculation but a strategy to practically leverage the XRP ecosystem. One key development is the integration of RLUSD—Ripple’s stablecoin—into Ripple’s payment solutions.

“XRP isn’t being treated as a crypto — but as an asset for settlement architecture. Webus isn’t betting on price. They’re betting on utility,” Pumpius said.

These arguments are gaining traction, especially as experts predict the GENIUS Act will likely pass. If approved, it could pave the way for RLUSD’s growth.

As of June 2025, RLUSD has a market cap of $369 million. It is designed to support fast, low-cost cross-border transactions, complementing XRP and helping build a more robust financial ecosystem.

Every transaction using RLUSD on the XRP Ledger (XRPL) requires XRP as a transaction fee. This gradually reduces the supply of XRP, which could drive its long-term value.

What are the Risks of Holding XRP as a Strategic Reserve?

Still, XRP remains a highly volatile digital asset. Its price history reveals it dropped over 80% in two major downturns: 2018 and 2021. This raises serious concerns for companies using XRP as part of a strategic reserve.

XRP Price Volatility Over the Past Three Months. Source: BeInCrypto

Investor expectations may also be outpacing real-world data. For example, the total value locked on XRPL is under $60 million. On-chain activity has dropped sharply, and the number of validator nodes remains low.

This suggests the network may not yet be ready for global-scale adoption.

In addition, experts are warning about the risks of the Public Crypto Vehicles trend. Many companies are using crypto accumulation to boost their stock prices.

However, they may be ignoring the long-term consequences if the value of their altcoin holdings drops significantly.

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