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 (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.
Read more