- VivoPower deploys $100M XRP for DeFi yield with Flare.
- Partnership validates Flare’s FAssets for institutional crypto use.
- RLUSD adoption ensures treasury stability and compliance.
VivoPower, a publicly-traded energy company on Nasdaq, has now announced a strategic partnership with Flare to roll out a 100 million strategy to utilize XRP to generate yield in decentralized finance (DeFi). The program is an institutional giant leap towards cryptocurrency treasury management. The arrangement entails the Flare FAssets mechanism to deposit returns on the VivoPower XRP assets, initially of $100 million.
VivoPower intends to re-invest in its underlying XRP using proceeds of Flare protocols like Firelight. The strategy aims at providing maximisation of shareholder value with scalable and capital-efficient returns. The action makes VivoPower the initial player in the digital assets cooperative financing enterprise.
VivoPower CEO Kevin Chin pointed out that having an active treasury management is important. The partnership with Flare forms a yield farming and reinvesting loop, which enhances our XRP position, he said. The strategy resembles that of companies such as MicroStrategy, a significant Bitcoin holder.
Flare’s Role in Institutional DeFi
Institutions may use XRP in programmable DeFi settings with Flare FAssets technology, and security isn’t even an issue. The collaboration cements Flare infrastructure as a major layer in the XRP treasury ecosystem. Flare co-founder Hugo Philion highlighted the system’s potential. To allow institutions to create risk-free income, he outlined their technology as a means of integrating conventional assets into DeFi.
The move to introduce the Ripple RLUSD stablecoin into the treasury stability and compliance has been made by VivoPower. It is alleged that a two-fold strategy of XRP and RLUSD will unite high-return potential and legal compliance. The transition to a digital asset-oriented treasury is facilitated by the $121 million capital increase of the firm that was headed by Saudi Prince Abdulaziz bin Turki Al Saud.
The partnership comes after several financial transactions undertaken by VivoPower, such as a recent agreement with a $121 million private placement, and a prospective acquisition of 200 million Tembo by Energi Holdings. The actions demonstrate the increasing confidence in the corporation of VivoPower in digital assets and green energy solutions.
Uphold, a digital asset platform holding $7 billion in reserves, explains the importance of the collaboration. VivoPower has already shown that the Flare ecosystem is of institutional quality, and thus it is a precedent regarding the number of publicly-traded companies that are experimenting with crypto treasuries.
The market got the attention of VivoPower; the stocks of the company rose by 26 percent after the company announced its new strategy that is XRP-oriented. The company is seeking to become the first publicly traded company to focus on an XRP treasury, taking advantage of the rising use of the cryptocurrency
