Lean Ventures, a Seoul-headquartered asset manager, has announced that it reached an agreement with NASDAQ-listed Vivo Federation to establish a $300 million fund with Ripple Labs shares. With this new vehicle, South Korean retail investors can get exposure to XRP with no need to buy the physical cryptocurrency.
$300 million Ripple Labs shares deal makes headlines in South Korea: What to know
According to a press release shared yesterday, Dec. 12, a new Ripple Labs shares fund has been launched by Lean Ventures, one of the biggest South Korean asset managers. The deal will be handled with the infrastructure of Vivo Federation, a blockchain unit of VivoPower International PLC.
Under the terms of the joint venture agreement, Lean Ventures will arrange for the establishment of a dedicated investment vehicle to acquire and hold an initial target of $300 million in Ripple Labs shares.
Lean Ventures has already canvassed interest from qualified South Korean institutional and retail investors and now increases its bet on digital assets.
VivoPower recently received written approval from Ripple Labs to purchase an initial tranche of Ripple Labs preferred shares and is now negotiating bilaterally to purchase additional Ripple Labs shares from institutional holders of Ripple Labs shares worth an estimated $300 million.
As part of the joint venture, Vivo Federation will receive a share of management fees and performance carry, which would target a net economic return for VivoPower of $75 million over three years based on an initial $300 million in assets under management.
Institutional investors can get exposure to XRP with discount?
As stressed by Adam Traidman, the chairman of VivoPower’s Advisory Council, the endgame goal of this cooperation is to provide more opportunities for investing in XRP and related products for the South Korean market:
We are delighted to have entered into this partnership with Lean Ventures, given its established status and reputation in South Korea. As we have noted previously, South Korea is a highly strategic market for Vivo Federation, given that it is the largest holder by value and number of XRP tokens in the world. With this dedicated investment vehicle, qualifying South Korean institutional and retail investors can gain exposure to Ripple Labs shares and, in turn, XRP at a material discount to the spot price.
Vivo Federation is the digital asset arm of VivoPower, focused on XRPL-based real-world blockchain applications and maintaining exposure to Ripple Labs shares and XRP tokens.
As covered by U.Today previously, 21Shares, a U.S.-based asset manager, is preparing its ETFs on spot XRP for launch.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team