Ripple’s Evernorth to Raise $1B, Larsen Invests 50M XRP

The newly formed venture Evernorth, backed by Ripple and led by former Ripple executive Asheesh Birla as CEO, has revealed plans to list on Nasdaq through a merger with blank check company Armada Acquisition Corp II. This strategic move is expected to generate over $1 billion in proceeds, with the explicit purpose of accumulating XRP tokens and developing XRP-based financial products. The initiative has drawn significant institutional backing from Japanese financial giant SBI and major cryptocurrency exchange Kraken, signaling strong confidence in Evernorth’s business model.

Asheesh Birla outlined Evernorth’s approach, stating the entity will actively pursue “acquisition opportunities” and establish a dedicated investment team. The venture’s strategy has drawn comparisons to MicroStrategy’s approach with Bitcoin, with prominent X user Ripple Bull Winkle describing Evernorth as “MicroStrategy built for XRP from the ground up.” This comparison highlights the potential for Evernorth to become a major institutional holder of XRP, potentially reducing circulating supply through direct purchases from exchanges.

Beyond simple accumulation, Evernorth plans to create substantial utility around XRP through the development of liquidity pools, lending protocols, and yield generation programs built around XRP as the base asset. As Ripple Bull Winkle elaborated, “More on-chain use = more transaction volume = more reason for institutions to hold XRP for settlement.” This comprehensive approach addresses both supply dynamics and fundamental utility, potentially creating a virtuous cycle for XRP adoption and value.

While Evernorth prepares for massive XRP accumulation, Ripple co-founder Chris Larsen made headlines with the sale of 50 million XRP tokens worth approximately $120 million on October 20, according to data from CryptoQuant. Initial concerns emerged within the XRP community that this substantial sale might trigger market panic and contribute to price declines, given Larsen’s prominent position and the significant volume involved.

However, Larsen quickly clarified that the transaction represented a strategic investment in Evernorth rather than a market exit. On social media platform X, he explained: “Evernorth fills the missing link today in XRP capital markets and XRP usage in DeFi products. I’m proud to invest 50M XRP in the firm (you may see some wallet movement on this).” This clarification reframed the transaction from a bearish signal to a vote of confidence in Evernorth’s mission, demonstrating how established XRP stakeholders are actively supporting the new venture’s capital formation.

Amid these institutional developments, XRP has experienced significant price pressure, declining nearly 20% over the past two weeks to reach $2.42 according to CoinGecko data. This correction has occurred despite the positive news surrounding Evernorth and Larsen’s strategic investment, creating a complex market narrative for XRP holders and observers.

Market sentiment data from Santiment reveals that crowd sentiment toward XRP has dropped to its lowest point in nine months, typically considered a bearish indicator. However, Santiment noted that cryptocurrency markets often move contrary to overall expectations, suggesting that extreme negative sentiment could potentially signal a buying opportunity. This contrarian perspective is bolstered by continued bullish analyst predictions, including one from X user ChartNerd who envisions a potential price explosion to $27 during the current market cycle.

The divergence between negative short-term sentiment and optimistic long-term projections reflects the complex dynamics currently shaping XRP’s market position. While immediate price action remains challenging, the institutional infrastructure being built through ventures like Evernorth, combined with strategic investments from key stakeholders like Larsen, suggests fundamental developments that could support XRP’s value proposition beyond current market fluctuations.