Ripple’s $40B Bet: Wall Street Goes All-In on Stablecoins

Ripple's $40B Bet: Wall Street Goes All-In on Stablecoins - Professional coverage

According to Financial Times News, Ripple has raised $500 million from investors including Ken Griffin’s Citadel Securities and Fortress Investment Group at a $40 billion valuation. The funding round also included hedge funds Brevan Howard and Marshall Wace plus crypto investors Pantera Capital and Galaxy Digital. Ripple runs its own stablecoin RLUSD with a nominal market value of $1 billion and cryptocurrency XRP that circulates at $133 billion, making it the world’s fourth-biggest token. The company recently offered to buy $1 billion of its shares from employees and investors at the same $40 billion valuation and reported 2025 as its best year with platform payments surpassing $95 billion. Ripple has been aggressively expanding through acquisitions including crypto prime broker Hidden Road for $1.25 billion, corporate treasury management company GTreasury for $1 billion, and stablecoin infrastructure provider Rail for $200 million.

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<h2 id="the-wall-street-embrace”>The Wall Street Embrace

Here’s what’s really happening: traditional finance is finally putting serious money into crypto, and they’re doing it through the safest possible door—stablecoins. Citadel Securities and Fortress aren’t betting on speculative meme coins or wild NFT projects. They’re backing what’s essentially digital cash that’s pegged 1:1 to the dollar. It’s the least risky way to play the crypto game while still getting exposure to the growing digital payments infrastructure.

And let’s be real—this wouldn’t be happening without the political shift. The article mentions Congress passed landmark stablecoin regulations this year, and Trump’s administration has made crypto a “strategic national focus.” Basically, the regulatory uncertainty that kept big money on the sidelines for years is finally clearing up. But is this genuine belief in the technology, or just fear of missing out now that the regulatory gates are opening?

Valuation Reality Check

Now, a $40 billion valuation is absolutely massive. That puts Ripple ahead of Circle, which runs the world’s second-biggest stablecoin USDC and is valued at $26 billion after its NYSE listing. But here’s the thing—Ripple’s own stablecoin RLUSD only has a $1 billion market value. So investors are clearly valuing the entire infrastructure and potential, not just the current stablecoin business.

The company’s been on an acquisition spree—Hidden Road, GTreasury, Rail—which suggests they’re building something much bigger than just another stablecoin. They’re trying to create an entire financial ecosystem. But remember WeWork? Rapid expansion through acquisitions can be risky business. Can they actually integrate all these pieces successfully?

The Stablecoin Wars

We’re basically watching the beginning of the stablecoin wars. Tether still dominates with its USDT, but now you’ve got Circle’s USDC and Ripple’s RLUSD all fighting for market share. The difference? Ripple seems to be positioning itself as more than just a stablecoin issuer—they want to be the infrastructure provider for the entire digital payments ecosystem.

But here’s my question: do we really need multiple dollar-pegged stablecoins? It feels like we’re heading toward a situation where the market might consolidate around a few winners. Ripple’s betting they’ll be one of them, and Wall Street seems to agree—for now.

The Political Wildcard

Let’s not ignore the elephant in the room: this entire investment thesis depends heavily on continued political support. The article specifically mentions Trump’s pro-crypto stance, but what happens if the administration changes? Regulatory winds can shift quickly in Washington, and crypto has been through multiple boom-bust cycles driven largely by regulatory sentiment.

These Wall Street firms aren’t dumb—they’re making calculated bets with the current political landscape in mind. But crypto regulation is still evolving, and future administrations might not be as friendly. That’s the hidden risk nobody’s really talking about amidst all this celebration.

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