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VivoPower Partners with Flare to Deploy $100M in XRP, Introducing the XRPFi Standard for Institutional Yield
Global sustainable energy solutions company, VivoPower International, has announced a strategic partnership with layer-1 blockchain Flare to optimize its Ripple (XRP) holdings. The initiative involves an initial deployment of $100 million through a scalable framework built on Flareβs native protocols, marking a significant step in institutional adoption of blockchain technology.
Transitioning to an XRP-Centric Treasury Operation
As a Nasdaq-listed corporation, VivoPower is taking bold steps to transform its corporate treasury management. This initiative represents the first large-scale execution of its strategy to adopt an XRP-focused treasury model. Supported by a consortium of global shareholders and guided by former senior Ripple executives in Asia, VivoPower aims to turn its digital asset holdings into a productive and yield-generating operation.
How VivoPower Plans to Generate Yield on XRP
According to the company, the partnership with Flare will enable VivoPower to generate yield through Flare-native protocols like Firelight. The generated income will be reinvested into its core XRP holdings, creating what VivoPower describes as a βperpetually compounding and capital-efficient treasury.β
This initiative introduces the new XRPFi standard, which is designed to meet the specific needs of institutional treasury management. The model is built on three foundational principles:
- Sustainably generated yield
- Regulatory clarity
- Asset-backed security
VivoPower selected XRP as its core reserve asset due to its proven regulatory clarity, robust operational history, and technical architecture that aligns well with tokenized real-world assets. These factors make XRP a logical choice for the companyβs digital treasury strategy.
Adopting Rippleβs RLUSD Stablecoin for Stability
Kevin Chin, Executive Chairman and CEO of VivoPower, revealed that the company plans to incorporate Rippleβs RLUSD stablecoin as a primary cash-equivalent reserve. This move aims to enhance the stability and regulatory compliance of its treasury operations, further solidifying its blockchain-driven approach to corporate finance.
The Role of Flare in Institutional Blockchain Adoption
For Flare, this partnership is a significant milestone, showcasing its capabilities as an institutional-grade platform for XRP utility. Flareβs FAssets system allows non-smart contract assets like XRP to seamlessly enter programmable decentralized finance (DeFi) environments while retaining their native security attributes.
βOur FAssets system is more than just a bridge; itβs a gateway that enables institutions to bring assets like XRP into programmable DeFi environments to generate yield, all while maintaining their fundamental security,β said Hugo Philion, Co-Founder of Flare.
This partnership is expected to set the stage for broader institutional adoption of blockchain technology, encouraging other organizations to explore similar utility-driven approaches for their treasury management.
Flareβs Growing Ecosystem and Liquidity
Flareβs ecosystem has been gaining significant traction, as evidenced by its liquidity growth. According to recent data, the networkβs total value locked (TVL) surged nearly 460% in just two months, climbing from $29 million on April 1 to a record high of $162.14 million as of June 8. This rapid growth highlights the increasing confidence in Flareβs capabilities as a blockchain platform for institutional use cases.
VivoPowerβs innovative XRP-centric treasury strategy and its partnership with Flare demonstrate how blockchain technology can be leveraged to create sustainable, compliant, and efficient financial solutions for corporations.
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