Blockchain payments firm Ripple Labs Inc. has reached a $40 billion valuation following a $500 million funding round, signaling strong investor confidence in its expanded offerings and strategic direction.
The funding round was led by investment fund Fortress and included participation from affiliates of major financial players such as Citadel Securities, Pantera Capital, Galaxy Digital, Brevan Howard, and Marshall Wace. The operation closed earlier this week.
This significant capital injection positions Ripple as one of the most valuable fintech companies globally, surpassing many competitors in the enterprise blockchain sector.
Brad Garlinghouse, Ripple’s CEO, emphasized the market validation. He stated the investment reflects “both the incredible momentum of Ripple as well as further validation of the market opportunity we are aggressively pursuing from some of the world’s most trusted financial institutions.”
Ripple, co-founded by Chris Larsen in 2012, is now strategically expanding beyond its foundational cross-border payment solutions. The company is moving into custody services, prime brokerage, corporate treasury, and the development of new products like its stablecoin RLUSD.
Garlinghouse highlighted this evolution: “We started in 2012 with one use case — payments — and have expanded that success to custody, stablecoins, prime brokerage, and corporate treasury, leveraging digital assets like XRP.” He added that Ripple “stands as a partner to institutions seeking to access cryptocurrencies and blockchain.”
The fundraising occurs amid a period of increasing institutional adoption of blockchain technology and a surge in interest for stablecoins from traditional banks. It also follows a favorable shift in the regulatory landscape for cryptocurrencies in the United States.
Ripple had previously faced regulatory scrutiny, including a lawsuit from the U.S. Securities and Exchange Commission (SEC) that was resolved this year.
Based in San Francisco, Ripple has not yet disclosed specific plans for the newly acquired funds. However, sources close to the company indicate the capital could be deployed to fuel expansion in Asia and Europe, alongside further innovations in stablecoins and custody solutions.
The company’s network has grown to include over 300 financial institutions worldwide, with its flagship Ripple Payments product handling more than $95 billion in volume. Despite the major news, the price of Ripple’s native token, XRP, remained largely unaffected, trading at $2.25 with a modest 0.3% decline over the past 24 hours.