‘XRP Is Simply The Beginning’: VivoPower Execs Reveal 5-Year Strategy
VivoPower International’s pivot toward an XRP-denominated treasury was revealed practically one month earlier. What the market had actually not yet heard– in detail– was why the Nasdaq-listed company chose XRP over Bitcoin and Ether, how it intends to wring yield from that position, and what its designers believe the next half-decade will look like for crypto-native corporates.
Those responses showed up in a 40-minute interview with Thinking Crypto host Tony Edward, where Executive Chairman and CEO Kevin Chin and Board-of-Advisors Chair Adam Traidman used the most granular view to date of the business’s strategy.
Why VivoPower Chose XRP
“My crypto journey actually started with buying XRP in 2016,” Chin stated, describing that the token’s original usage case– affordable transfers into emerging markets– mirrored the locations where he operates both for-profit and non-profit endeavors. “Fast-forward to today, when the chance came about to turn Vivo into an XRP-focused treasury and DeFi services business, I really felt convicted to do that, as did the rest of the board.”
That individual conviction dovetailed with what Traidman called a glaring market gap: “We’ve all been enjoying digital-asset treasury business after Michael Saylor’s substantial success … VivoPower was the very first with XRP.” More than a hundred noted companies now hold Bitcoin for balance-sheet alpha, he noted, but none had taken the very same leap with XRP despite its deep liquidity and “large following globally.”
Where MicroStrategy treats bitcoin as inert digital gold, VivoPower wants a property it can deal with. “The majority of these treasury companies are focused on a net possession that doesn’t have native utility,” Traidman stated. “Using a token which does have real utility is much more powerful due to the fact that we can affect that utility by growing the community.”
To that end, VivoPower will turn over custody and OTC conversions to BitGo, stake a portion of its holdings on Flare Network to earn yield, and recycle excess dollars into Ripple’s RLUSD stablecoin for cross-border settlements. “In the next couple of weeks, we’re going to begin trialing that with concerns to a few of our Philippines-based companies,” Chin verified, citing direct disappointment with SWIFT delays into Southeast Asia and Africa.
The 5-Year Plan
Unlike an area ETF, the corporate structure lets VivoPower share those yields straight with financiers. “That would be the plan,” Traidman stated when asked whether staking earnings might flow out as a dividend. “It’s a genuine differentiator for prospective investors who desire the advantage of XRP and yield.”
That yield focus is currently forming capital technique. VivoPower will money preliminary purchases with equity, anchored by Prince Abdulaziz of Saudi Arabia, an XRP holder considering that 2017. Borrowing could follow, however only “if the cost-of-capital formula stacks up,” Chin stated, praising ex-Goldman CFO David Mansfield for “judicious” discipline.
Both executives resolved the specter of crypto volatility head-on. “There is some fervor in the markets in regards to treasury-based strategies,” Chin yielded, yet argued that swings become “an asset that you can generate yield off.” His treatment is time horizon: “We think in five-year cycles when we formulate technique and execution strategies.”
Traidman, who constructed one of the very first iOS bitcoin wallets before selling it to Coinbase, framed the macro backdrop as distinctively favorable. Spot-crypto ETFs and more accommodative US regulators, he stated, have actually developed “a really strong flooring” beneath top-tier tokens. “It’s too huge to fail … The downside threat is decreasing.”
Under nondisclosure obligations, Chin declined to detail upcoming offers, however revealed that due diligence is under way on startups developing atop the XRP Journal– investments that might both earn venture returns and broaden use-cases for VivoPower’s treasury. The company’s own subsidiaries will pilot RLUSD-based remittances, with an eye towards broadening into Ghana, Kenya, and other markets where dollar liquidity is limited.
Chin summarized the ambition succinctly: “We will still be here in 5 years’ time, in ten years’ time, irrespective of what goes on in the market,” due to the fact that the design extends beyond holding a volatile possession to “engaging and developing DeFi options that ultimately produce earnings and money.” At press time, XRP traded at $2.08.