Stablecoin company Ripple has raised $500 million in a new funding round, valuing the firm at $40 billion, signaling traditional financial giants' accelerating entry into the digital asset space. The investment, led by Ken Griffin’s Citadel Securities and Fortress Investment Group, not only highlights strong market demand for stablecoin payment solutions but also propels Ripple’s valuation past its key competitor.
According to the company’s disclosure on Wednesday, the $500 million funding round attracted several prominent Wall Street institutions. Alongside Citadel Securities and Fortress, hedge funds Brevan Howard and Marshall Wace, as well as U.S. crypto investment firms Pantera Capital and Galaxy Digital, participated in the round.
This investment, dominated by large traditional financial institutions, comes amid a more crypto-friendly regulatory environment. With the U.S. Congress passing a landmark stablecoin regulatory bill this year, the path for traditional financial players to enter the sector has become clearer. The Trump administration has elevated the crypto industry to a strategic priority, paving the way for deeper institutional involvement.
Post-funding, Ripple’s $40 billion valuation exceeds that of its U.S. rival, Circle Internet Corp., the issuer of the world’s second-largest stablecoin, USDC. Circle went public on the New York Stock Exchange in May this year and currently holds a $26 billion valuation. Ripple’s new valuation also makes it one of the highest-valued privately held crypto companies globally.
**Regulatory Tailwinds Drive Wall Street Participation**
The stablecoin regulations introduced in the U.S. this year provide a framework for traditional financial institutions to safely and compliantly engage in the sector, reducing investment uncertainty. Analysts suggest that with the Trump administration positioning crypto as a national strategic focus, traditional capital is rapidly deploying into the space.
Ripple CEO Brad Garlinghouse stated that this funding round “further validates the market opportunity we are actively pursuing.” This indicates that both startups and industry leaders recognize the vast potential of stablecoins as a critical new payment method.
**Valuation Surpasses Circle as Ripple Expands Footprint**
With its $40 billion valuation, Ripple not only achieves significant success in capital markets but also solidifies its leadership in the industry. To reflect this valuation for employees and early investors, Ripple recently proposed a $1 billion share buyback at the $40 billion valuation.
Simultaneously, Ripple is aggressively expanding its business through a series of large-scale acquisitions. This year, the company has completed multiple deals, including the $1.25 billion purchase of crypto prime broker Hidden Road, the $1 billion acquisition of corporate treasury management firm GTreasury, and a $200 million buyout of stablecoin infrastructure provider Rail. According to the company, 2025 marks its best-performing year, with its platform processing over $95 billion in payment volume.
**Betting on Stablecoins as the Future of Payments**
At the core of Ripple’s strategy is becoming a major player in stablecoins and their infrastructure. Stablecoins are cryptocurrencies pegged 1:1 to sovereign currencies like the U.S. dollar, typically backed by assets such as U.S. Treasuries, functioning as digital cash. Advocates argue that stablecoins enable faster and cheaper payments compared to existing methods.
Currently, stablecoins are primarily used by traders to swiftly switch between crypto tokens and traditional currencies, while large corporations explore their use in cross-border payments and collateral management. Ripple’s own business spans payment and custody services, serving fintech firms and enterprise clients. The company operates its own stablecoin, RLUSD (nominal market cap: $1 billion), and is linked to XRP, the world’s fourth-largest cryptocurrency (circulating market cap: $133 billion), demonstrating its deep integration into the stablecoin ecosystem.