Citadel leads a Wall Street consortium in taking a stake, with crypto giant Ripple valued at $40 billion, surpassing Circle.

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Stablecoin company Ripple has raised $500 million in a new round of financing, reaching a valuation of $40 billion, marking the accelerated entry of traditional financial giants into the digital asset sector. Led by Ken Griffin's Citadel Securities and Fortress Investment Group, this investment not only highlights the strong demand for stablecoin payment solutions, but also allows Ripple's valuation to surpass its main competitors.

According to the company's disclosure on Wednesday, this $500 million round attracted many well-known Wall Street institutions. In addition to Citadel Securities and Fortress, hedge funds Brevan Howard and Marshall Wace, as well as U.S. crypto investment firms Pantera Capital and Galaxy Digital, also participated.

This round of investment, dominated by large traditional financial institutions, comes amid a more crypto-friendly regulatory environment. With the U.S. Congress passing a landmark stablecoin regulatory bill this year, the path for traditional financial players to enter this sector has become clearer. The Trump administration has elevated the crypto industry to a strategic priority, paving the way for greater institutional participation.

After this round of financing, Ripple's valuation reached $40 billion, surpassing its U.S. competitor and the issuer of the world's second largest stablecoin USDC, Circle. The latter was listed on the New York Stock Exchange in May of this year and is currently valued at $26 billion. This new valuation also makes Ripple one of the highest-valued private crypto companies in the world.

Favorable Regulation Drives Wall Street Entry

This year's U.S. stablecoin regulations provide a framework for traditional financial institutions to participate in the sector safely and compliantly, reducing investment uncertainty. Analysts believe that with the Trump administration making the crypto industry a national strategic priority, traditional capital is accelerating its deployment.

Ripple CEO Brad Garlinghouse stated that this round of financing "further validates the market opportunity we are actively pursuing." This suggests that both startups and industry giants see stablecoins as an important new payment method with huge market potential.

Valuation Surpasses Circle, Ripple Expands Its Footprint

With its new $40 billion valuation, Ripple has not only achieved great success in the capital markets but also consolidated its industry leadership. To reflect this valuation for internal staff and early investors, Ripple has recently proposed to repurchase $1 billion worth of shares from employees and investors at the $40 billion valuation.

At the same time, Ripple is actively expanding its business footprint through a series of large-scale acquisitions. So far this year, the company has completed several deals, including acquiring crypto prime broker Hidden Road for $1.25 billion, enterprise treasury management firm GTreasury for $1 billion, and stablecoin infrastructure provider Rail for $200 million. According to the company, 2025 will be its best-performing year, with payment volumes handled by its platform exceeding $95 billion.

Betting on the Future of Stablecoin Payments

Ripple's core strategy is to become a key player in the stablecoin and infrastructure sector. Stablecoins are cryptocurrencies pegged 1:1 to sovereign currencies such as the U.S. dollar, usually backed by assets like U.S. Treasury bonds, and function as digital cash. Supporters believe that compared to existing payment methods, stablecoins make payments faster and cheaper.

Currently, stablecoins are mainly used by traders to quickly switch between crypto tokens and traditional currencies, while large enterprises are exploring their use for cross-border payments and collateral management. Ripple's own business already covers payment and custody services, with clients including fintech firms and large corporates. The company operates its own stablecoin RLUSD (with a notional market cap of $1 billion), and is associated with the world's fourth largest cryptocurrency XRP (with a circulating market cap of $133 billion), demonstrating its deep involvement in the stablecoin ecosystem.

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