Why are more companies building XRP reserves?

The increasing trend of public cryptocurrency Treasury has triggered competition among altcoins. Each coin is competing to become the top choice for companies and institutions looking to build strategic reserves.

In this competition, the XRP community presents several claims highlighting XRP's superiority. What are these claims? This article explains their content in depth.

More Companies, XRP as an Asset

Recently, Webus International, headquartered in China, submitted Form 6-K to the US Securities and Exchange Commission (SEC). This submission confirmed a $300 million strategic reserve plan focused on XRP.

Webus is not alone. VivoPower International also announced a $121 million XRP reserve plan. Meanwhile, Wellgistics invested $50 million in XRP.

According to a recent BeInCrypto report, VivoPower plans to purchase an additional $100 million worth of XRP through BitGo's over-the-counter (OTC) desk.

This list continues to grow. Ault Capital Group (ACG), BC Bud Corporation (BCBC), Worksport (WKSP), Remixpoint, and other companies have shown similar movements.

These actions suggest that global corporations are increasingly viewing XRP as a strategic financial reserve asset.

Why Do Companies Choose XRP as a Strategic Reserve?

Companies choose Bitcoin as a strategic reserve because they believe in its value storage capacity during inflation. But why do they choose altcoins?

Altcoins are more volatile and often heavily dependent on the transparency and actions of development teams.

Each altcoin offers a unique value proposition. XRP supporters believe there are solid reasons to trust it.

Austin King, co-founder of OmniFDN, suggests that companies may want to integrate XRP into international payment systems.

They believe XRP's fast transaction speed and low costs are ideal for cross-border payments. This can help companies improve financial efficiency and increase transparency in global services like Webus's vehicle calling platform.

"Most people will see this and think it's primarily about price speculation. But that's not really the key thing happening here. The real strategy is connecting to these rapidly growing cryptocurrency networks and participating in their growth." – Austin King, OmniFDN Co-founder

Analyst Pumpius offers another perspective. He believes this is a strategy to practically utilize the XRP ecosystem. One key development is the integration of RLUSD—Ripple's stablecoin—into Ripple's payment solutions.

"XRP is not treated as a cryptocurrency but as an asset for payment architecture. Webus is not betting on price. They are betting on utility." – Pumpius

These claims are gaining attention, especially as experts predict a higher likelihood of the GENIUS bill passing. If approved, it could promote the growth of RLUSD.

As of June 2025, RLUSD's market cap is $369 million. It is designed to support fast and affordable cross-border transactions, helping to complement XRP and build a stronger financial ecosystem.

All transactions using RLUSD on XRPL (XRP Ledger) require XRP for transaction fees. This can gradually reduce XRP's supply, potentially increasing its long-term value.

Risks of XRP as Strategic Reserve?

Nevertheless, XRP remains a highly volatile digital asset. According to price records, it has fallen by over 80% during two major declines in 2018 and 2021. This raises serious concerns for companies using XRP as part of their strategic reserves.

Investor expectations are ahead of real data. For example, the total deposits on XRPL are less than $60 million. On-chain activity has sharply decreased, and the number of validator nodes remains low.

This suggests the network is not yet ready for global adoption.

Moreover, experts are warning about the risks of the public cryptocurrency vehicle trend. Many companies are raising stock prices by accumulating cryptocurrencies.

However, they may be ignoring the long-term consequences if the value of their altcoin holdings significantly declines.