South Korea deal would tie a big slice of Ripple to a VivoPower-backed fund — and send XRP flows to APAC

What’s happening and why it matters

A plan being shopped in South Korea would put a large block of Ripple Labs equity into a VivoPower-backed vehicle, while simultaneously creating nearly $1 billion of token exposure to XRP for local investors. The proposal calls for roughly $300 million in Ripple shares to be sourced through a joint venture and wrapped into a product that lets qualified retail and institutional clients buy both company equity and linked XRP exposure.

If the deal goes ahead, it would be one of the biggest moves to marry traditional equity ownership of a major crypto firm with direct token exposure inside the same product in the APAC market. That twin exposure is what makes the proposal notable for traders, fund managers and wealth platforms across the region.

How the transaction is meant to work

The outline presented to potential investors is straightforward on paper but complex in practice. A joint venture — backed by VivoPower and locally licensed partners — would raise capital from qualified retail and institutional buyers in South Korea. That capital would be used in two linked ways:

• Purchase of Ripple Labs equity: About $300 million of capital would be used to acquire secondary shares in Ripple or newly issued equity, depending on what Ripple can legally sell to the vehicle. Those shares would give investors indirect ownership of Ripple’s long-term business prospects.
• Token exposure to XRP: Separately, the vehicle would create exposure to XRP tokens worth close to $1 billion in headline terms. That exposure would be achieved either by holding XRP in custody, using derivative contracts that track XRP, or by granting investors token-linked economic rights while the JV holds the tokens.

Mechanically, investors would buy units in the JV or a fund that bundles both exposures. Documents suggest there could be tranches — institutional tranches with tighter terms and qualified retail tranches with retail-appropriate limits. Lockup terms are expected for the equity component, with multi-year restrictions commonly used to protect secondary rounding; token holdings may face shorter windows but could be subject to release schedules tied to market conditions.

Custody and operational work would land with regulated local custodians and a global crypto custody partner. The JV structure appears designed to let local distributors sell shares to eligible investors without Ripple directly marketing in Korea.

How this could move XRP prices and Ripple’s valuation

There are a few clear market paths the deal could take, depending on execution.

In the short term, announcing a large buyer or a sizeable new custody pool of XRP tends to support token prices because it signals demand and removes supply from circulating markets. If the JV buys or locks up hundreds of millions in XRP, price pressure could be notable, particularly in APAC trading venues where liquidity is thinner than global venues.

For Ripple’s equity, $300 million of outside buyers is material but not transformative on its own — unless the deal changes expectations about Ripple’s future revenue or about broader institutional appetite. If investors see this as a stamp of confidence from a region with deep payment-market demand, the equity could rerate modestly.

There are downside scenarios too. If the JV needs to hedge XRP exposure by selling futures or spot in volatile conditions, that could create selling pressure and muddy the intended price support. Execution risk is high: timing of purchases, custody set-up, and whether the JV can actually secure the envisaged equity all shape outcomes.

Medium-term, the key variables are how much XRP is locked up and for how long, and whether the market treats the equity and token pieces as separate bets or as a bundled product. If the market views the package as a new distribution channel that consistently draws flows into XRP, that could lift both secondary liquidity and valuations. If selling or unwind events are frequent, the package could add episodic volatility instead.

Regulatory backdrop that will shape feasibility

This deal sits at the intersection of two tricky regulatory areas: how U.S. agencies and other jurisdictions classify tokens and how South Korea regulates qualified retail offerings and custody.

In the U.S., the legal journey Ripple faced has left a patchy precedent for token vs equity classification. Any cross-border product that offers both company shares and token exposure will invite scrutiny about whether the token component should be treated as a security, how custody is handled, and whether marketing crosses borders. South Korea’s regulator has been relatively proactive in licensing crypto services but keeps strict rules for qualified retail sales and AML custody requirements.

Key practical blockers include cross-border custody rules, the ability of Ripple to sell shares to a foreign vehicle, and whether local regulators will allow a bundled product that mixes token economics with equity without additional safeguards. AML/CTF rules will also force strict KYC, and custodian acceptance of XRP will depend on their internal compliance and insurance arrangements.

What investors should check before buying in

For anyone considering units in this JV, here are the concrete checks that matter:

• Custody arrangements: Who holds the XRP and the legal basis for that custody? Is there insurance and segregation of assets?
• Counterparty risk: What are the JV partners’ track records? How will disputes be resolved across borders?
• KYC and qualification rules: Verify whether the product is limited to certain investor classes and what documentation is required.
• Tax and accounting: How will gains from the equity and the token be taxed in Korea for residents? How do fund accounting and NAV calculations treat volatile token holdings?
• Token vs equity rights: Holding units in the JV is not the same as owning Ripple shares directly or holding XRP yourself. Check voting rights, dividend claims and whether token holders have any direct control.
• Liquidity and exit terms: Note lockups, redemption windows, and whether the JV can gate redemptions during market stress.
• Concentration risk: A bundled product concentrates exposure to one company and one token. That amplifies idiosyncratic risk tied to Ripple-specific news.

What this signals about the bigger picture in APAC

Beyond the mechanics, the proposal is a signal. Wealth managers and fund platforms in Asia are increasingly trying to give clients regulated access to both tokens and token-adjacent exposures. Bundling equity in a crypto-native firm with token holdings is an example of product innovation that meets investor demand for crypto but tries to wrap it in familiar structures.

If this deal clears regulatory and custody hurdles, expect more experiments like it: regional vehicles that combine private equity stakes in crypto companies with on-chain asset exposure. That could widen the pool of institutional capital flowing into tokens, boost local trading volumes and force clearer global rules about how equity and token exposures can be sold together.

For investors, the setup is interesting but layered with execution and regulatory risk. If you focus on the likely outcomes: a well-executed program could be bullish for XRP liquidity and give a modest bump to Ripple’s private-market value. Poor execution or regulatory pushback could quickly turn a headline into a source of volatility.

Sources

• linkedin.com
• coindesk.com
• coindesk.com
• coindesk.com
• indices.coindesk.com
• coindesk.com