Webus Circumvents SEC Restrictions with Innovative XRP Strategy

Webus International Limited, a company navigating the complexities of XRP access under the shadow of the Ripple lawsuit, has unveiled a novel strategy to allow institutional investors exposure without breaking SEC regulations. This strategy involves partnering with SEC-registered investment advisor Samara Alpha for a legally compliant framework to manage XRP as a corporate reserve asset. By utilizing this arrangement, Webus avoids promoting XRP as an investment and focuses on holding it within its treasury as a means of hedging against market fluctuations. 36Crypto analyst DARKHORSE sheds light on the approach, explaining that Webus does not intend to generate profits from XRP, further solidifying its legal footing. The company’s strategic move ensures compliance with SEC regulations and transparency through filing Form 6-K outlining a $300 million plan for digital assets. Key elements include secure custody practices, phased deployment, and comprehensive regulatory oversight. It is noteworthy that Ripple, the company behind XRP, has not directly transferred the tokens to Webus. Instead, secondary markets or external custodians chosen by Ripple are employed to facilitate transactions, safeguarding against the restrictions on sales imposed by the court’s order. The arrangement effectively minimizes the risk of violating any injunctions, ensuring adherence to legal frameworks.