Recently, Ripple made a big move—planning to establish a $1 billion Digital Asset Vault (DAT) dedicated to accumulating XRP. This may seem simple, but the underlying logic is quite profound.

How does it work? Ripple decided to raise $1 billion through the SPAC fast track, bypassing the cumbersome procedures of a traditional IPO. At the same time, Ripple will also pour XRP into the vault—currently holding about 4.74 billion XRP, plus 35.9 billion XRP in custodial accounts—this time, they will invest some real funds.

Moreover, Ripple has also acquired enterprise financial management giant GTreasury for the same price of $1 billion. This move is clever, effectively embedding XRP directly into the cash flow systems of traditional enterprises. At the same time, they have partnered with Absa Bank in South Africa to build institutional-grade custody services. All these initiatives are paving the way for DAT.

In essence, what is Ripple trying to do? First, use DAT as a "long-term buyer." You must know that about 1 billion XRP are unlocked from custodial accounts every month, which can create selling pressure in the market. With a large buyer like DAT, this pressure can be absorbed, reassuring institutional investors to enter the market.

Second, the strategic focus is shifting. Previously, Ripple mainly focused on controlling XRP supply; now, it is turning toward creating demand—making XRP a standard option for enterprise cross-border payments and asset management. Third, the timing is also right, coinciding with the RWA (Real-World Asset Tokenization) boom, and echoing the tokenization efforts of giants like BlackRock and JPMorgan, elevating XRP from a simple "payment coin" to an institutionally recognized "reserve asset."

What does the market think of this? There are indeed positive signals—SEC litigation has been settled, and the regulatory framework is relatively clearer. The emergence of DAT provides a bottom support for XRP’s liquidity and valuation, and the anticipation of spot ETFs is also rising. But risks are also present: whether SPAC fundraising can keep pace, whether market liquidity can absorb such large buy orders, and most critically, whether institutional investors are truly willing to follow suit—these are variables. Additionally, the net outflow of about 300 million XRP per month may still compete with DAT’s buying pressure.

Overall, Ripple’s strategic approach is: first, lock in a large position to show sincerity; then, introduce SPAC funds and institutional custody services; finally, penetrate the traditional financial system through GTreasury—layer by layer, the goal is to maximize institutional trust in XRP. Seeing Ripple dare to bet so heavily, others will naturally feel more confident to join in.