Chinese Firm Webus’ Stock Jumps After Filing With SEC for $300M XRP Strategic Reserve
Webus International (WETO), a China-based company, has announced ambitious plans to establish a substantial XRP-focused corporate treasury valued at $300 million. This initiative, disclosed in a Form 6-K filing with the U.S. Securities and Exchange Commission on Tuesday, follows a May announcement outlining the company’s strategy. Instead of issuing new shares, Webus intends to finance the treasury through loans and credit facilities. The move signals a significant commitment to XRP, the fourth-largest cryptocurrency by market capitalization.
The core objective of Webus’s XRP treasury is to enhance its operational efficiency and transparency. The company, which provides customizable car and touring services globally, aims to integrate Ripple’s payment network into its business processes. This integration is expected to streamline cross-border payments and improve the transparency of booking and payment transactions for both customers and drivers.
A key component of this strategy involves a renewed partnership with Tongcheng Travel Holdings, a major online travel agency in China. The extended “Wetour x Tongcheng” charter lines will leverage the XRP Ledger for settling cross-border ride payments and driver compensation. This partnership underscores Webus’s commitment to practical application of XRP within its operational framework.
This significant investment in XRP follows a similar move by VivoPower International, which announced plans for a $121 million XRP treasury. These developments suggest a growing trend among corporations exploring the potential benefits of incorporating cryptocurrencies into their financial strategies. While the financing plan for Webus’s XRP treasury is currently non-binding and contingent upon final agreements and due diligence, the announcement has already generated significant market interest.
The positive market reaction is evident in the approximately 9% increase in Webus’s share price in early Wednesday trading, following the announcement. This price surge reflects investor confidence in the strategic value of the XRP treasury initiative. The move also coincides with a modest 2% increase in XRP’s price over the past 24 hours, mirroring broader, relatively subdued gains within the cryptocurrency market. Webus’s proactive adoption of XRP highlights the potential for wider corporate adoption of cryptocurrencies in the future.
