VivoPower International (VVPW), a Nasdaq-listed company, is set to utilize $100 million worth of XRP in a move towards enhancing its digital asset treasury strategy. This decision, announced on June 11, involves a collaboration with Flare, a layer-1 blockchain platform designed to enable non-smart contract tokens like XRP to engage with decentralized finance (DeFi) protocols.
The initiative represents the first major application of Flare's FAssets system, allowing XRP to interact within DeFi frameworks. VivoPower aims to generate yield through Flare-based protocols, such as Firelight, and plans to reinvest any earnings to increase its XRP holdings further. Additionally, the company will incorporate Ripple’s RLUSD stablecoin as part of its cash reserves, emphasizing a strategy that ensures stability and compliance in its treasury operations.
CEO Kevin Chin stated, "It’s no longer enough to simply hold XRP; the duty to our shareholders is to make it productive." This approach highlights the growing trend of institutional adoption of cryptocurrencies and aims to mirror the strategies of companies like MicroStrategy, which has become a leader in Bitcoin holdings.
Flare’s co-founder, Hugo Philion, noted the significance of this partnership, stating, "Our FAssets system [...] is a gateway that allows institutions to bring assets like XRP into programmable DeFi environments to generate yield, all while retaining their fundamental security." VivoPower's recent financial maneuvers, including a $121 million private share placement led by Saudi Prince Abdulaziz, signify a strong commitment to expand its cryptocurrency treasury and enhance its asset portfolio.
The initiative represents the first major application of Flare's FAssets system, allowing XRP to interact within DeFi frameworks. VivoPower aims to generate yield through Flare-based protocols, such as Firelight, and plans to reinvest any earnings to increase its XRP holdings further. Additionally, the company will incorporate Ripple’s RLUSD stablecoin as part of its cash reserves, emphasizing a strategy that ensures stability and compliance in its treasury operations.
CEO Kevin Chin stated, "It’s no longer enough to simply hold XRP; the duty to our shareholders is to make it productive." This approach highlights the growing trend of institutional adoption of cryptocurrencies and aims to mirror the strategies of companies like MicroStrategy, which has become a leader in Bitcoin holdings.
Flare’s co-founder, Hugo Philion, noted the significance of this partnership, stating, "Our FAssets system [...] is a gateway that allows institutions to bring assets like XRP into programmable DeFi environments to generate yield, all while retaining their fundamental security." VivoPower's recent financial maneuvers, including a $121 million private share placement led by Saudi Prince Abdulaziz, signify a strong commitment to expand its cryptocurrency treasury and enhance its asset portfolio.
