Trident Digital (TDTH), Nasdaq listed public company based in Singapore, is raising $500 million to create what it describes as one of the world’s first XRP Ripple corporate treasuries. Trident Digital announced that they would be fundraising to create a long term treasury for XRP.
The company further annouced that they would be utilising Ripple’s yield generating capabilities through the use of staking. Trident Digital wishes to develop a deep relationship with the Ripple team by involving themselves in partnerships with both application and infrastructure developers. The fundraising activities will be supported by US company Chaince Securities, which will advise on many strategies including equity sales. Trident Digital is awaiting regulatory approvals, but plans on deploying their treasury in the second half of 2025. Soon Huat Lim, Trident Digital CEO, said that the strategy was a forward looking bet on the role of digital assets in managing corporate capital.
Trident Digital Tech Holdings Ltd announced on the Nasdaq website that they were going to raise up to $500 million and would become one of the world’s largest corporate XRP Treasuries. They listed Chaince Securities LLC as their strategic advisor. Trident Digital listed three major strategies to engage with the XRP blockchain, including 1) a long term holding strategy, 2) use of Ripples staking capabilities to create yield, and 3) collaborate with projects within the Ripple ecosystem. The CEO of Trident Digital stated that the project aims to better allocate capital within the company and to engage in more efficient cross-border transactions. The project is still awaiting regulatory approval, according to the official announcement, but is on track to be released in the second half of 2025.
Ripple’s staking features are of interest to the Singaporean based tech company. Trident Digital wishes to do more with the ISO accredited blockchain than merely buy and hold a treasury strategy. Trident Digital’s share price dropped by 37.6% after the announcement. The company experienced, as reported in December 2024, a net income loss of $3.1 million. The company plans on using stock issuances to raise money for the Ripple purchases. Various other companies have also made plans to create a Ripple Corporate Treasury. Webus, a Chinese AI company, will allocate $300 million to XRP. VivoPower will allocate $100 million. Wellgistics will allocate $50 million. The appeal of an XRP Treasury include its remittance capabilities as an ISO accredited transaction service, and its staking reward system.
Soon Huat Lim, Trident Digital CEO and founder, said that strategic foresight guided everything that the tech company did. The company has its own blockchain based identity system and trades on the Nasdaq exchange. Lim further stated that digital assets were changing the financial landscape and were at the forefront of financial services evolution. Lim believes that blockchain technology is improving the efficiency of capital allocation and can be used by managers to improve the efficiency of public companies. Lim also values the use of Ripple as a cross border transaction system that is accredited with international standards. The CEO of Trident Digital wants to show the world that public companies have a special role in promoting blockchain ecosystems by showing their practical use for decentralised finance.
The SWIFT international banking standard is very similar to Ripple regarding its function as cross border remittance service. Ripple, however, is also built using ISO accreditation, but is faster and less expensive than SWIFT. Companies and banks may choose to adopt Ripple for their transaction needs. Traders may be interested in such adoption practices because the price of XRP may inevitably go up if more institutions use the underlying blockchain. The current use of Ripple by the public company Trident Digital may be a good sign that the corporate world is starting to realise the benefits of an ISO accredited transaction system. Many banks, however, may be reluctant to use cryptocurrencies for bridge transactions because crypto has a bad reputation for being volatile. And this is why stablecoins such as USDT are becoming more popular because they directly address the volatility problem.
