Chinese Firm Webus International Plans to Raise $300 Million for XRP Strategic Reserve

On May 29th, Webus International, an AI mobility firm listed on Nasdaq, announced its plan to raise $300 million without selling company shares to create a special XRP fund aimed at improving its international payment system.

This represents a significant shift to transform its high-end car service into a streamlined, global experience for international travelers. The company announced that it will secure funding from diverse sources, including bank loans, shareholder support, institutional credit, and existing cash reserves. This strategy will prevent the dilution of existing shares.

“Domestically, our Tongcheng Partnership provides unmatched reach across China’s mobility landscape. Internationally, our potential XRP implementation can eliminate traditional payment friction,” Nan Zheng, Webus International CEO states.

Nan Zheng, the head of Webus, said that the planned XRP reserve is just one part of a three-part plan. The other two parts involve building their blockchain system with secure, immutable records and launching a Web3 rewards token with specialized digital wallets.

Webus International Eyes XRP Strategic Reserve

The planned XRP reserve and the company’s wallets will expedite fare payments and accelerate driver refunds, boosting operational efficiency and enhancing user satisfaction. Notably, the company has yet to specify the commencement date for XRP purchases.

Webus’ announcement came right after VivoPower International shared similar news, stating a $121 million private deal specifically to create its own XRP holdings. The energy company plans to utilize funds from digital asset investors and key partners, including Saudi Royal Prince Abdulaziz bin Turki Al Saud, to purchase XRP and develop XRP Ledger systems.

While Bitcoin remains the top choice for company reserves, XRP is gaining popularity as a specialized payment system for businesses seeking to easily integrate blockchain technology into their real-world services. Despite this apparent rise in interest from major companies, XRP’s price hasn’t yet increased as much as expected.

XRP Price Trajectory

Despite positive news regarding the company’s treasury initiatives, XRP continues to face market headwinds. According to CoinGecko data, XRP is currently priced at $2.19, representing a 4.6% decrease as of today. This price remains below the 20-day Bollinger Band’s middle line, positioned at $2.37. The upper and lower bands stand at $2.56 and $2.18, respectively.

The Relative Strength Index (RSI) has fallen to 40.72, dipping below the neutral level of 50. This indicates diminished buying strength and suggests potential sideways movement or further price declines. Unless XRP breaks above $2.37, it appears trapped in a range, failing to capitalize on the positive sentiment stemming from the company’s treasury news.