VivoPower, a publicly traded company on NASDAQ, has announced a $100 million partnership with the blockchain network Flare in order to secure passive income from its XRP holdings.
This essentially means that the company will be actively using its XRP for generating yield instead of just holding the tokens.
The passive income earned as a result of this deal will be reinvested back into the Ripple-linked token. In such a way, the company plans to increase shareholder value.
It is worth noting that the deal is particularly significant for the popular altcoin since it is being presented as a novel institutional use case for the XRP token.
Flare, which acts as a programmable layer that enables decentralized finance (DeFi) on the XRP Ledger, and VivoPower are pitching XRP to institutions in the form of "XRPFi."
Ripple's fledgling RLUSD stablecoin, which was rolled out last December, will also be used as VivoPower’s primary cash-equivalent reserve
VivoPower's pivot to an XRP company is supported by a consortium of shareholders, including Saudi royalty.
The company's new strategy is being managed with the help of former Ripple Asia executives.
In late May, VivoPower, a minor sustainable energy company, revealed that it had secured $121 million for funding its XRP treasury strategy with the help of Saudi royalty.
As reported by U.Today, infrastructure company BitGo will be responsible for handling the company's nine-digit XRP purchase.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team