VivoPower Worldwide’s pivot towards an XRP-denominated treasury was introduced nearly one month in the past. What the market had not but heard—intimately—was why the Nasdaq-listed agency selected XRP over Bitcoin and Ether, the way it intends to wring yield from that place, and what its architects consider the following half-decade will seem like for crypto-native corporates.
These solutions arrived in a 40-minute interview with Pondering Crypto host Tony Edward, the place Government Chairman and CEO Kevin Chin and Board-of-Advisors Chair Adam Traidman provided probably the most granular view so far of the corporate’s technique.
Why VivoPower Selected XRP
“My crypto journey truly began with shopping for XRP in 2016,” Chin stated, explaining that the token’s authentic use case—low-cost transfers into rising markets—mirrored the geographies the place he operates each for-profit and non-profit ventures. “Quick-forward to at present, when the chance took place to show Vivo into an XRP-focused treasury and DeFi options firm, I actually felt convicted to try this, as did the remainder of the board.”
That non-public conviction dovetailed with what Traidman known as a obtrusive market hole: “We’ve all been watching digital-asset treasury firms after Michael Saylor’s big success … VivoPower was the primary with XRP.” Greater than 100 listed firms now maintain Bitcoin for balance-sheet alpha, he famous, however none had taken the identical leap with XRP regardless of its deep liquidity and “very giant following globally.”
The place MicroStrategy treats bitcoin as inert digital gold, VivoPower needs an asset it will possibly work with. “Most of those treasury firms are targeted on a internet asset that doesn’t have native utility,” Traidman stated. “Utilizing a token which does have actual utility is much more highly effective as a result of we will affect that utility by rising the ecosystem.”
To that finish, VivoPower will entrust custody and OTC conversions to BitGo, stake a portion of its holdings on Flare Community to earn yield, and recycle extra {dollars} into Ripple’s RLUSD stablecoin for cross-border settlements. “Within the subsequent few weeks, we’re going to begin trialing that with reference to a few of our Philippines-based companies,” Chin confirmed, citing firsthand frustration with SWIFT delays into Southeast Asia and Africa.
The 5-12 months Plan
In contrast to a spot ETF, the company construction lets VivoPower share these yields immediately with buyers. “That may be the plan,” Traidman stated when requested whether or not staking earnings might circulate out as a dividend. “It’s an actual differentiator for potential buyers who need the upside of XRP and yield.”
That yield focus is already shaping capital technique. VivoPower will fund preliminary purchases with fairness, anchored by Prince Abdulaziz of Saudi Arabia, an XRP holder since 2017. Borrowing might comply with, however solely “if the cost-of-capital equation stacks up,” Chin stated, praising ex-Goldman CFO David Mansfield for “considered” self-discipline.
Each executives addressed the specter of crypto volatility head-on. “There’s some fervor within the markets when it comes to treasury-based methods,” Chin conceded, but argued that swings turn into “an asset that you may generate yield off.” His treatment is time horizon: “We expect in five-year cycles once we formulate technique and execution plans.”
Traidman, who constructed one of many first iOS bitcoin wallets earlier than promoting it to Coinbase, framed the macro backdrop as uniquely favorable. Spot-crypto ETFs and extra accommodative US regulators, he stated, have created “a extremely sturdy ground” beneath top-tier tokens. “It’s too huge to fail … The draw back threat goes down.”
Below nondisclosure obligations, Chin declined to element forthcoming offers, however disclosed that due diligence is underneath means on startups constructing atop the XRP Ledger—investments that might each earn enterprise returns and develop use-cases for VivoPower’s treasury. The corporate’s personal subsidiaries will pilot RLUSD-based remittances, with a watch towards increasing into Ghana, Kenya, and different markets the place greenback liquidity is scarce.
Chin summed up the ambition succinctly: “We’ll nonetheless be right here in 5 years’ time, in ten years’ time, regardless of what goes on out there,” as a result of the mannequin extends past holding a risky asset to “partaking and constructing DeFi options that in the end generate earnings and money.”
At press time, XRP traded at $2.08.
Featured picture created with DALL.E, chart from TradingView.com
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