VivoPower International has made headlines by launching a substantial $300 million investment fund in collaboration with Lean Ventures, aimed at tapping into Ripple“s equity and the growth linked to XRP. This strategic move is geared towards attracting institutional investors to Ripple”s multi-chain RLUSD expansion strategy.
The management of this fund will be handled by Lean Ventures, a firm based in Seoul that has established strong connections with both private investors and government funds in South Korea. Their involvement is expected to enhance the fund”s credibility and draw greater institutional interest.
VivoPower”s digital asset division, known as Vivo Federation, is set to oversee the acquisition of shares from Ripple Labs. The purchase of preferred shares has already received the green light from Ripple, marking a significant step in its broader strategy to expand its market presence.
As part of its objectives, VivoPower anticipates generating $75 million in management and performance fees over the next three years, contingent on the fund”s performance and growth. Additionally, if Ripple”s valuation increases, there could be further financial benefits for VivoPower.
Chris Kim, Managing Partner at Lean Ventures, noted a robust demand for investments related to Ripple among South Korean investors. This interest has been fueled by recent upgrades to the XRP Ledger, aimed at improving stability and enhancing decentralized finance (DeFi) functionalities.
Furthermore, K-Weather, a Korean company, has shown interest in joining the investment initiative, with VivoPower currently conducting due diligence to explore this partnership. This venture not only aims to provide institutional investors with exposure to Ripple but also seeks to establish VivoPower”s foothold in the South Korean digital asset landscape.
In the wake of this announcement, VivoPower”s stock experienced a notable surge, closing at $2.88—a remarkable increase of 13.39%. Following after-hours trading, the stock price rose further to $2.91. The day”s trading volume reached 3.72 million shares, significantly surpassing the 65-day average.
Overall, this partnership marks a pivotal moment for both VivoPower and Ripple, potentially redefining their roles in the evolving landscape of digital assets and institutional investment.
