A number of investors determined that as much as 90% of Ripple’s net asset value was effectively tied to XRP—the token closely associated with the company but legally separate from it—before agreeing to participate in the firm’s recent fundraising, according to a Bloomberg report.

Ripple’s $500 million share sale last month attracted heavyweight institutions including Citadel Securities, Fortress Investment Group, Marshall Wace, Brevan Howard–linked entities, Galaxy Digital and Pantera Capital. The round valued Ripple at $40 billion, the highest valuation ever achieved by a private crypto company. But investors only committed after negotiating unusually strong downside protections that resemble structured credit products rather than typical late-stage venture financing.

Bloomberg’s Ryan Weeks reports that several of the participating funds viewed the deal primarily as a concentrated wager on a single, highly volatile asset. Ripple held roughly $124 billion worth of XRP in its treasury at July market prices, reinforcing the perception that the company’s valuation was overwhelmingly tied to the token.

While institutions were willing to take on that exposure, they insisted on safeguards. The negotiated protections included:

1. A right to sell their shares back to Ripple after three or four years at a guaranteed 10% annualized return.
2. A 25% annualized return if Ripple triggers a forced buyback.
3. A liquidation preference ensuring payout priority over older shareholders in the event of a sale or insolvency.

Collectively, the terms create a synthetic floor under investor capital—an uncommon feature in late-stage tech deals but increasingly adopted as traditional finance adapts its risk frameworks to crypto’s volatility.

XRP has dropped nearly 40% since its mid-July high as the broader crypto market came under pressure through October and November.

At the same time, U.S. spot XRP ETFs are approaching $1 billion in net inflows after a 15-day run of steady investments—momentum likely bolstered by the resolution of Ripple’s legal battle with the SEC, which confirmed that XRP is not a security.