- Chinese AI firm Webus has announced its plans to establish a strategic XRP reserve to facilitate cross-border payments seamlessly.
- Regardless of this, XRP has declined below a crucial support level at $2.2 as the broad market faces serious liquidation.
A Nasdaq-listed Chinese Artificial Intelligence (AI) firm, Webus International, has declared its intention to invest a whopping amount of $300 million into crypto. Unlike the others, Webus is planning to invest in XRP reserves as part of the plan to facilitate cross-border payments.
According to CEO Nan Zheng, this strategic decision will significantly accelerate its blockchain-related development ambitions and transform its management of both domestic and international operations.
These strategic developments have the potential to create a powerful synergy between our domestic and international operations. The integration of an XRP blockchain integration has the potential to revolutionize how we handle cross-border payments for both partners and travellers worldwide.
Over the years, Chinese banks have been reported to have faced issues with cross-border bank processing. Henceforth, the integration of XRP would make it easier to facilitate its operation and serve global customers.
Additionally, the tokens would be used for lending, shareholder guarantees, third-party credit, etc. Leveraging these “non-dilutive financing methods”, Webus is reported to be seeking to maintain capital flexibility, support long-term growth, and preserve shareholder value.
Meanwhile, the official press release establishes that the investment would focus on three key initiatives. As earlier highlighted, it would establish a strategic XRP reserve. Secondly, it would aid in the development of a comprehensive blockchain infrastructure. This would include on-chain booking records, Web3 loyalty tokens, wallets, etc. Finally, it would focus on the acceleration of the global expansion initiative.
Amidst the backdrop of this, Webus has renewed a nationwide mobility partnership with one of the leading online travel platforms in China, Tongcheng Travel Holdings Ltd. Commenting on this, Zheng explained that this would deliver end-to-end innovation and capitalize on the huge mobility data of Tongcheng as well as its massive user base.
Domestically, our Tongcheng Partnership provides unmatched reach across China’s mobility landscape. Internationally, our potential XRP implementation can eliminate traditional payment friction, allowing instant settlement with chauffeurs and service providers worldwide while providing immediate refunds when needed. Together, these initiatives can create a truly borderless travel experience for our customers.
According to experts, this initiative marks a significant move towards altcoin after several high-profile companies embraced Bitcoin for their investment decisions.
Weeks ago, logistics firm Addentax Group disclosed its intention to invest $800 million in Bitcoin and Trump. In a similar vein, VivoPower International recently disclosed having raised $121 million in a private share placement to launch an XRP treasury strategy, as indicated in our previous news article.
A recent CNF update also hinted that digital asset advocate Aravind has asked the Reserve Bank of India to invest $10 billion worth of its foreign reserve in cryptos, including XRP.
Regardless of this development, XRP has “printed” losses on its daily and weekly price charts, trading at $2.18. According to our recent analysis, XRP could stage a bullish reversal to around 600% from the current level. Also, another analyst has predicted that the asset could hit $15 before the end of the cycle, as also mentioned in our previous news story.
