Is XRP The Key Beneficiary of the new US Sovereign Wealth Fund

John Barry | Mon Feb 03 2025

Trump’s Sovereign Wealth Fund Announcement and the Saudi Arabia Influence

The United States is taking a monumental step in financial strategy with the recent announcement of its first-ever Sovereign Wealth Fund (SWF). When Donald Trump signed the executive order establishing this fund, he explicitly referenced Saudi Arabia’s Sovereign Wealth Fund (PIF) as a model the U.S. is following as a best practice. The Saudi PIF, one of the most powerful investment funds in the world, has successfully leveraged strategic investments to strengthen the nation’s financial position—a strategy the U.S. now seeks to replicate.

While Saudi Arabia does not directly invest in cryptocurrencies, its sovereign wealth fund does actively invest in blockchain technology and fintech companies that are shaping the future of finance. One such company in the Saudi SWF’s investment portfolio? Ripple, the company behind XRP.

Saudi Arabia, Blockchain Investments, and Ripple’s Key Position

Saudi Arabia’s Public Investment Fund (PIF) does not hold Bitcoin, Ethereum, or any other cryptocurrencies. However, it recognizes the potential of blockchain and has made strategic investments in companies leading blockchain innovation.

Ripple is among these key investments. Saudi Arabia’s government and financial institutions have maintained a strong partnership with Ripple, leveraging its technology for cross-border payments and financial infrastructure improvements. The fact that Saudi Arabia has chosen Ripple as a major blockchain partner signals its confidence in XRP’s real-world utility—a validation that the new U.S. Sovereign Wealth Fund may take into account.

The Ripple-Trump Connection: The “Beef Bourguignon” Deal

As speculation over Ripple’s role in the U.S. Sovereign Wealth Fund grows, an intriguing tweet from Ripple’s Chief Legal Officer, Stuart Alderoty, has fueled excitement.

On January 7th, Alderoty shared a photo of Donald Trump, Ripple CEO Brad Garlinghouse, and himself in what many believe was a private meeting between Ripple and Trump’s team. However, the true significance of this post lies in his cryptic message accompanying the image:

While this might appear as a casual remark, in the business world, “beef bourguignon” is a metaphor for a deal that has been carefully negotiated and successfully concluded. Historically, French royalty and military leaders celebrated successful negotiations and treaties with elaborate feasts, often serving beef bourguignon.

For Alderoty to use this phrase—in a post with Trump and Garlinghouse—strongly suggests that a major deal involving Ripple has been finalized. Given the timing of this post, it has to be asked, will Ripple be  directly involved with the newly announced U.S. Sovereign Wealth Fund?

Why XRP Could Be a Major Beneficiary

If Ripple is playing a role in shaping the U.S. Sovereign Wealth Fund, XRP stands to benefit tremendously. Here’s why:

1 Ripple’s Blockchain Infrastructure: The U.S. government has already acknowledged the efficiency of Ripple’s blockchain technology for cross-border transactions and financial settlements. If Ripple becomes a preferred technology provider, XRP could see unprecedented institutional adoption.

2 U.S. Following Saudi Arabia’s Strategy: Since the Saudi PIF has already invested in Ripple, it’s logical that the U.S. government—now following Saudi Arabia’s investment strategy—would also prioritize Ripple as a key blockchain partner.

3 Regulatory Clarity for XRP: If Ripple is directly working with the U.S. Sovereign Wealth Fund, this would be a strong indication that XRP is gaining regulatory acceptance in the United States—potentially eliminating uncertainties that have surrounded the cryptocurrency for years.

4 Potential Strategic XRP Holdings: While Saudi Arabia’s SWF does not hold cryptocurrencies directly, the U.S. may take a different approach. If XRP is officially recognized as a strategic financial asset, it could be included as part of the fund’s holdings or used as a settlement currency for cross-border transactions.

Final Thoughts

The U.S. Sovereign Wealth Fund is a historic development, and Ripple’s potential involvement is a game-changing moment for XRP. The Trump-Garlinghouse meeting, Alderoty’s cryptic “beef bourguignon” message, and Saudi Arabia’s Ripple investment all point to Ripple playing a significant role in the U.S. financial system’s evolution.

As more details emerge, one thing is clear: XRP is well-positioned to be one of the biggest winners in this new era of U.S. financial strategy.

 

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