VivoPower teams up with Flare Networks, deploying $100M in XRP to explore DeFi opportunities and expand its blockchain footprint.
VivoPower International (VVPW), which is listed on Nasdaq, has entered into a strategic partnership with Flare Networks to deploy $100 million in XRP tokens.
This action aims to unleash new revenue streams and capitalize on the extensive potential of decentralized finance (DeFi).
VivoPower Is Investigating DeFi Expansion Through XRP Investment On Flare
Flare Networks, a layer one blockchain platform, announced its partnership with VivoPower in an X post earlier today.
According to reports, the Nasdaq-listed organization reportedly allocates $100 million of XRP to Flare.
VivoPower intends to generate yields on its treasury assets through the most recent agreement as part of its digital asset treasury management transition.
VivoPower’s partnership with Flare is a significant milestone, representing the initial large-scale implementation of Flare’s FAssets system.
This innovation allows the token to capitalize on DeFi opportunities by utilizing protocols such as Firelight, resulting in a yield that will be reinvested to increase VivoPower’s XRP holdings further.
Furthermore, the platform will incorporate Ripple’s RLUSD stablecoin as a reserve asset equivalent to currency. According to Kevin Chin, CEO of VivoPower,
It’s no longer enough to simply hold XRP; the duty to our shareholders is to make it productive. Adopting Ripple’s RLUSD is a cornerstone of this strategy, providing the stability and compliance this next-generation treasury demands.
Concurrently, the agreement is a substantial advancement for Flare regarding institutional validation.
Hugo Philion, Flare’s co-founder, emphasized that the FAssets system is a gateway for institutions to access DeFi opportunities through assets such as XRP.
He observed, “Our FAssets system […] is not merely a bridge; it is a gateway that enables institutions to incorporate assets such as XRP into programmable DeFi environments to generate yield, all while maintaining their fundamental security.”
Continuing Strategic Investments
VivoPower has recently become the first public company to establish an XRP-focused Treasury, as CoinGape reported.
The company intends to acquire additional tokens with an initial investment of $121 million.
The fundraising initiative was led by Saudi Prince Abdulaziz bin Turki Abdulaziz Al Saud, who serves as the Chairman of Eleventh Holding Company.
The monarch declared,
We have been investors in the digital asset sector for a decade and have been long-term holders of XRP. After reviewing a number of listed vehicles seeking to embrace a digital asset treasury model, we selected VivoPower given its strategic focus on XRP and its objective to contribute to building out of the XRPL ecosystem.
VivoPower has recently partnered with BitGo to acquire $100 million in XRP tokens, following a growing trend of platforms investing in the digital asset.
Other companies, such as Webus, are also investigating the integration of XRP and have plans to raise $300 million through non-equity financing sources.
