🧠 Food for thought

Implications, context, and why it matters.

The $1 billion headline hides SPAC mechanics that will drive XRP deployment

• SPAC (special-purpose acquisition company) redemptions can shrink net cash for XRP well below the $1 billion headline 12
• Armada II holders may cash out Class A shares from the trust instead of joining the merger, which can drive funds below the headline 2
• SBI Holdings will invest $200 million 3. Commitments also come from Ripple and Pantera Capital 3. Kraken and GSR committed as well 3. Terms for these private placements were not disclosed, which could shape near-term deployment 3
• SEC staff issued no-action relief (a staff letter stating it will not recommend enforcement if set conditions are met) that lets certain state‑chartered trust companies serve as qualified custodians (regulated firms permitted to hold client assets) for crypto assets, easing an operational hurdle for treasuries like Evernorth 4

New rules widen custody options as institutional demand grows

• Over 60% of institutional investors hold digital assets, up from 40% in 2023 5
• The SEC issued a September 2025 no-action letter that allows Registered Investment Advisers (RIAs) and registered funds like mutual funds to use certain state‑chartered trust companies as qualified custodians for crypto assets 4. That broadens options beyond national banks 4
• Providers with Multi-Party Computation (MPC) plus System and Organization Controls 2 (SOC 2) can capture flows 5. Assets Under Management (AUM) fees of 0.1–2% fit an outlook where allocations to digital assets may double by 2027 5
• South Korea’s BDACS, a digital asset custody provider, launched XRP custody in August 2025 5. That signals local rules are creating jurisdiction‑specific openings for licensed firms 5