Publicly-listed InsurTech company Reliance Global Group has announced its acquisition of XRP, marking a strategic move to expand its Digital Asset Treasury.
According to a recent release, Reliance’s acquisition of XRP is part of its efforts to build a diversified portfolio of cryptocurrencies, following its earlier accumulation of Bitcoin, Ethereum, and Cardano.
Notably, Reliance suggested that its crypto holdings align with its long-term strategy of striking a balance between innovation, stability, and value.
Why XRP?
Explaining the rationale behind its decision to add XRP, Reliance highlighted the token’s role as a bridge asset for cross-border payments. It also highlighted XRP’s technical strengths, including low transaction costs, fast settlement times, and high scalability, as key factors that prompted the acquisition.
This prowess aligns with the company’s commitment to invest in cryptocurrencies with strong fundamentals and real-world utility.
Although the announcement was made on September 30, it only gained widespread attention within the XRP community today after attorney Bill Morgan brought it to public notice. According to Morgan, Reliance’s investment in XRP was worth approximately $17 million. However, the official release did not mention the specific amount.
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Reliance Group Adds XRP to Treasury
Bigger Vision for XRP
The announcement didn’t specify how Reliance will use its XRP, but Morgan suggested that the purchase might be more than just an investment. It could be related to the company’s primary work in insurance.
Moreover, Morgan suggested the acquisition may be connected to Reliance’s plan for tokenized insurance policies or blockchain-based payments integrations. He emphasized that other pharmaceutical and travel firms have explored similar integrations in the past. In his view, these companies first acquired XRP before announcing XRPL-based payment integrations.
For context, Nasdaq-listed VivoPower raised $121 million in April to establish an XRP treasury. A few months later, the company announced support for RLUSD payments, a stablecoin partially minted on the XRPL, enabling customers to purchase its electric vehicles using the stablecoin.
Wellgistics Health also established a $50 million XRP treasury, while leveraging the XRPL for instant, low-cost payments.
Meanwhile, other companies, including Chinese automobile company Webus, have also adopted XRP as a treasury asset and integrated XRPL-related payment system.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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