Ripple-Backed Evernorth SPAC to Raise $1B for XRP Treasury

Evernorth’s merger with Armada Acquisition Corp II represents a strategic move to create what the company describes as a large XRP treasury. The SPAC deal, which aims to raise $1 billion, has already seen substantial contributions in the form of XRP rather than cash. According to reports, Ripple and co-founder Chris Larsen have already contributed $1 billion worth of XRP to the project just nine days after the SPAC announcement.

The nature of these initial contributions is crucial to understanding the current market dynamics. Because the early inputs were paid in XRP rather than cash, they did not create immediate upward pressure on exchange order books. Market purchases require fiat or cash to be placed into public markets, meaning the movement of existing XRP into a treasury doesn’t directly impact market liquidity or pricing in the short term.

The sequence of funding and market activity is what analysts believe could ultimately drive price movements. While the initial $1 billion in XRP contributions hasn’t affected markets, the upcoming cash raises could change that dynamic. SBI’s announced $300 million cash pledge represents one example of money that could be used to buy XRP outright on public exchanges.

Vincent Van Code, a software engineer and active voice in the XRP community, has highlighted that the bigger market event may still be ahead. He explained that the IPO itself could bring billions in new cash to the venture. If those funds are later used to buy XRP on the open market, existing supply could tighten significantly, potentially creating what he describes as a ‘supply shock.’ The timing of these cash inflows relative to market purchases will be critical, as exchanges have varying depth and a single large buyer can move prices more dramatically in thin markets than in liquid ones.

Beyond the immediate market mechanics, the Evernorth initiative reflects a broader narrative shift in how XRP is being positioned within the cryptocurrency ecosystem. Developers and analysts are increasingly speaking of XRP not only as a payment bridge but also as a treasury asset within the XRP Ledger ecosystem. This represents a significant evolution in the cryptocurrency’s perceived utility and long-term value proposition.

Vincent Van Code has suggested that a time may come when people keep a substantial share of their wealth in XRP and on the XRP Ledger, essentially treating it as a digital treasury. This perspective aligns with comments from Ripple’s CTO David Schwartz, who has emphasized similar ideas about self-custody and on-ledger utility. These themes are being reused as part of the argument for long-term XRP demand, positioning the cryptocurrency as both a transactional medium and a store of value within the growing XRPL ecosystem.

The XRP community has responded positively to the Evernorth development, with commentators including market voice Nietzbux framing it as strongly bullish for XRP. The community is closely monitoring the SPAC schedule, particularly the Q1 2026 target for closing the merger, recognizing that the timing of cash inflows and subsequent market activity could be pivotal for price action.

The current approach of building a treasury through XRP contributions rather than immediate cash purchases has allowed the project to accumulate substantial holdings without disrupting market dynamics. However, as Van Code and other analysts have noted, the transition to cash-based fundraising through the IPO could mark a turning point. If and when that new capital enters the market to purchase additional XRP, the supply-demand balance could shift dramatically, testing exchange liquidity and potentially validating the ‘supply shock’ predictions that have captured the community’s attention.