VivoPower International (VVPW) Plans to Put $100 Million of Its Treasury into XRP

The firm announced Wednesday it has partnered with layer-1 blockchain Flare

Nasdaq-listed VivoPower International (VVPW) is planning to allocate $100 million to accumulate the cryptocurrency XRP and generate yield from it through layer-1 blockchain Flare’s protocols, the company announced Wednesday.

The initiative will mark the first large-scale use of Flare’s FAssets system, which enables non-smart contract tokens like XRP to interact with decentralized finance (DeFi) protocols, the press release said.

VivoPower plans to generate yield through Flare-native protocols such as Firelight and reinvest the income to expand its XRP holdings. The company will also adopt payment firm Ripple's (NYSE:SVLY) RLUSD stablecoin as its cash-equivalent reserve.

“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,” CEO and executive chairman Kevin Chin said.

For Flare, the deal is a milestone of institutional validation, Flare co-founder Hugo Philion pointed out.

“Our FAssets system … is more than just a bridge; it’s a gateway that allows institutions to bring assets like XRP into programmable DeFi environments to generate yield, all while retaining their fundamental security.”

VivoPower is part of the growing roster of public firms raising money to purchase and add digital assets to their treasuries, a playbook popularized by Michael Saylor's Strategy (NASDAQ:MSTR) that has become the largest corporate holder of bitcoin (BTC).

The firm's latest move comes shortly after tapping BitGo's over-the-counter trading desk for acquiring an initial $100 million trench of XRP tokens.

VivoPower last month said that it entered into an agreement for a $121 million private share placement, with the fundraising led by Saudi Prince Abdulaziz bin Turki Abdulaziz Al Saud, chairman of Eleventh Holding Company, according to a SEC filing.