VivoPower International PLC has announced a strategic partnership with Lean Ventures, aiming to acquire $300 million in shares of Ripple Labs. This initiative is designed to provide investors with indirect exposure to nearly $1 billion worth of XRP without the need to purchase the tokens directly.
The ongoing joint venture primarily targets institutional and qualified retail investors in South Korea, a significant market for XRP. Following the announcement, shares of VivoPower surged by 11.8%, reflecting investor optimism as the company expands its focus on XRP.
VivoPower”s digital asset division, known as Vivo Federation, is tasked with sourcing the equity from Ripple for potential investors. Based on current market valuations, this investment could translate to approximately 450 million XRP tokens, valued at around $900 million.
Lean Ventures plans to create an investment vehicle specifically for holding the shares of Ripple Labs. This structure is particularly relevant in South Korea, which is recognized as one of the largest markets for XRP globally, indicating strong ongoing demand from both institutional and retail sectors.
In a significant development, VivoPower has received approval from Ripple to acquire an initial tranche of preferred shares and is currently in discussions with existing institutional shareholders to negotiate further purchases. Importantly, this deal allows VivoPower to engage in the investment without using its own capital; instead, the company anticipates earning management fees and performance-based returns from this arrangement.
VivoPower estimates that it could generate $75 million in net economic returns over three years if it successfully executes the $300 million mandate. This fee-based model minimizes risk while still granting exposure to the expanding XRP ecosystem.
This joint venture aligns with VivoPower”s recent pivot towards an XRP-centric treasury strategy. Earlier this year, the company raised $121 million in a private placement led by a prominent Saudi investor, positioning itself as one of the first publicly traded companies to anchor its digital asset strategy around XRP instead of the more commonly targeted assets like Bitcoin or Ethereum.
Additionally, VivoPower has started deploying XRP into yield-generating strategies, including a $100 million allocation via Flare”s FAssets system to optimize returns on its holdings. The company has also begun using Ripple”s RLUSD stablecoin for its treasury operations, further establishing a robust financial infrastructure centered around XRP.
The market response has been positive, with VivoPower shares reflecting a more than 100% increase over the past year. However, the company”s market capitalization remains relatively modest at $31.8 million.
South Korea is a pivotal market for XRP adoption, holding the largest position in terms of both value and trading volume worldwide. The joint venture aims to leverage existing demand while utilizing Lean Ventures” connections with South Korean institutional investors. Plans are also underway to attract additional capital from qualified investors in the region.
Moreover, Ripple CEO Brad Garlinghouse recently noted the impressive performance of XRP-related exchange-traded funds (ETFs), which have experienced 30 consecutive days of net inflows, nearing $1 billion in cumulative flows. This trend indicates a growing institutional confidence in XRP as a viable asset class, with South Korean investors increasingly incorporating XRP into their digital asset portfolios.
