Citadel leads Wall Street consortium investment, crypto giant Ripple valued at $40 billion, surpassing Circle

The new valuation makes Ripple one of the highest-valued private crypto companies in the world.

Written by: Ye Huiwen

Stablecoin company Ripple has raised $500 million in a new round of financing, reaching a valuation of $40 billion, marking a rapid influx of traditional financial giants into the digital asset sector. This investment, led by Ken Griffin’s Citadel Securities and Fortress Investment Group, not only highlights the strong demand for stablecoin payment solutions but also propels Ripple’s valuation beyond that of 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 major 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 the sector has become clearer. The Trump administration has elevated the crypto industry to a strategic priority, paving the way for deeper institutional involvement.

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

Regulatory Tailwinds Drive Wall Street Entry

The stablecoin regulations introduced in the U.S. this year provide a framework for traditional financial institutions to enter the sector safely and compliantly, reducing investment uncertainty. Analysts believe that, with the Trump administration positioning the crypto industry as a national strategic focus, traditional capital is accelerating its deployment.

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

Valuation Surpasses Circle, Ripple Expands Its Territory

With its new $40 billion valuation, Ripple has not only achieved great success in the capital markets but also solidified its industry leadership. To reflect the value of this valuation for internal employees and early investors, Ripple 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 the $1.25 billion acquisition of crypto prime broker Hidden Road, the $1 billion acquisition of enterprise treasury management company GTreasury, and a $200 million acquisition of stablecoin infrastructure provider Rail. According to the company, 2025 is expected to be its best-performing year, with its platform processing payment values exceeding $95 billion.

Betting on the Future of Stablecoin Payments

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

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