In a significant move that could enhance the adoption of XRP, Webus International Limited, known for its artificial intelligence (AI)-driven mobility solutions and premium chauffeur services, has announced a potential $300 million strategic financing plan.
This initiative aims to integrate XRP blockchain technology into its operations for global payment solutions, while also renewing its partnership with Tongcheng Travel Holdings Ltd., one of China’s leading online travel platforms.
Strategic XRP Integration Announcement
According to Paul Barron, who shared the news on social media platform X (formerly Twitter), the non-binding financing could involve various forms of non-equity funding, such as cash reserves, bank loans, shareholder guarantees, and institutional credit.
The plan outlines three key initiatives: establishing an XRP reserve to facilitate instant and low-cost cross-border settlements, developing a comprehensive blockchain infrastructure that includes wallets and Web3 loyalty tokens, and accelerating the company’s global expansion efforts.
Webus CEO Nan Zheng expressed optimism about the partnership with Tongcheng, stating that it strengthens the company’s operations in China while the integration of XRP could revolutionize the cross-border payment process:
This collaboration will extend the “Wetour × Tongcheng” inter-city charter services, capitalizing on Tongcheng’s impressive user base of 240 million annual paying customers to bolster Webus’s domestic network.
Eliminating Payment Barriers
In light of recent challenges, including a notable 54% revenue decline to $5.35 million over the past year, the financing plan represents a crucial step for Webus.
Following the announcement, shares of WETO surged over 34%, reflecting a surge of investor confidence in the company’s future prospects. Zheng highlighted the strategic importance of these developments, stating:
These strategic initiatives have the potential to create a powerful synergy between our domestic and international operations. Our partnership with Tongcheng strengthens our China network infrastructure, while the integration of an XRP blockchain integration has the potential to revolutionize how we handle cross-border payments for both partners and travelers worldwide.
He emphasized that the Tongcheng partnership enhances their infrastructure in China, while the XRP integration could significantly reduce payment friction, allowing for instant settlements and immediate refunds globally.
The partnership with Tongcheng not only provides major reach across China’s mobility landscape but also positions the company to eliminate traditional payment barriers through potential XRP implementation. This would enable seamless transactions with chauffeurs and service providers, creating a truly borderless travel experience for customers.
Despite this significant move, the XRP price has not reacted positively with the token’s valuation standing at $2.21. On a weekly basis, the token registers a major 10% retrace, while also dropping over 3% in the 24-hour time frame.
Featured image from DALL-E, chart from TradingView.com