Evernorth Holdings, a new institutional platform supported by Ripple veterans and prominent crypto investors, is launching with a distinctive strategy: establishing an active XRP treasury rather than merely tracking token prices. The Nevada-based company has announced its merger with Armada Acquisition Corp II, a move expected to generate over $1 billion in proceeds. These funds will be utilized for open-market XRP purchases and to foster ecosystem growth.
Unlike a conventional ETF, Evernorth's objective is to increase the amount of XRP held per share by deploying its treasury into lending and liquidity operations. This model mirrors traditional asset management strategies but is adapted for blockchain markets, indicating a shift in institutional finance towards active participation beyond passive exposure.
CEO Asheesh Birla, a former Ripple executive with extensive experience, stated that Evernorth was established to "capitalize on institutional demand for compliant, yield-generating digital assets."
Evernorth's strategy is centered on utility-driven growth, encompassing payments, lending, and participation in decentralized finance (DeFi). Ripple CEO Brad Garlinghouse expressed his support, noting, "Asheesh and team are building something special with Evernorth."
Active Treasury Model Signals New Institutional Playbook
The launch of Evernorth signifies a broader institutional trend, with cryptocurrencies increasingly being recognized as components of emerging liquidity management frameworks rather than solely speculative assets. By framing XRP as a yield-bearing treasury asset, Evernorth effectively merges traditional finance with blockchain technologies. This approach bears resemblance to early Bitcoin treasury models but incorporates an additional focus on generating yield.
Evernorth's debut coincides with Ripple's ongoing expansion and the growing institutional adoption of XRP. Notably, XRP futures on the CME have exceeded $3 billion in trading volume, and regulated products related to XRP are becoming more prevalent in global markets.
While July's XRP futures market saw significant activity, Evernorth's treasury model aims to channel this volatility into strategic asset management, positioning XRP as a valuable capital asset rather than just a subject of market discussion.