Ripple will hand over 126,791,458 XRP, according to details from a recent SEC filing about its role in the Evernorth Holdings deal.
XRP community figure Chad Steingraber called attention to this development in a tweet on Wednesday.
Per the filing, the XRP tokens, worth approximately $305 million today, will be locked and exchanged for company shares as part of Ripple’s investment in the Evernorth–Armada Acquisition Corp. II merger.
According to Steingraber, this action marks what could be a continuing pattern of Ripple leveraging XRP for strategic partnerships and equity exchanges.
Specifically, he suggested that this trend is only beginning, adding that it is “going to continue with other companies… and governments until it’s gone. Forever.”
Steingraber is speculating that XRP’s publicly available supply could diminish as the trend develops, potentially creating a supply shock that impacts price over the long term.
XRP as a Strategic Asset in Ripple’s Expansion
Meanwhile, the move suggests that Ripple is intensifying its efforts to connect with corporate and institutional partners through tokenized equity deals.
Ripple strengthens relationships with key ventures like Evernorth by converting XRP into company shares. At the same time, it is also reducing XRP’s circulating supply, an effect that could influence its long-term value.
This approach is not new. Ripple has previously used XRP for investments and acquisitions, including its stake in Tranglo and other fintech projects that enhance the XRP Ledger’s role in cross-border payments. Moreover, Ripple’s chairman has also pledged 50 million XRP as his investment in Evernorth.
Recent developments, such as GTreasury’s partnership with Ripple, further illustrate the company’s push into enterprise liquidity solutions where XRP serves a key role.
Overall, this strategy supports Ripple’s goal of making XRP a core component of global value exchange beyond payments, but also for treasury management, settlement, and tokenized assets.
Community Reactions
Within the XRP community, the revelation has sparked discussions about the potential deflationary impact of locking large amounts of XRP.
Many believe that as Ripple continues to form similar partnerships with private firms and even government entities, the available supply of XRP could tighten significantly over time.
X user “Randon Man” commented that many people are overlooking the importance of these developments:
“I don’t think they understand the groundwork and infrastructure Ripple has been building,” he said.
Another user, RESEDARAN, added:
“Wait until all the ETFs, reserves for transfers, and companies using XRP as treasury assets take their share. Once those tokens are out of circulation, there’ll be little left for speculation. When everything starts flowing through XRPL and RippleNet, and it’s going to be wonderful.”
Essentially, community members view this as a long-term bullish sign that could drive XRP’s price higher over time.