"Ripple offered institutions a guaranteed 10% annual return during last month's equity fundraising"

Ripple, in the course of raising $500 million in equity last month, reportedly offered some institutional investors the right to sell back their shares after a certain period and a guaranteed fixed return at the level of 10% per year.

On the 8th (local time), Bloomberg, citing sources, reported, "The investment agreement in last November included a clause allowing investors to sell their holdings back to Ripple if they wish 3~4 years later, in which case Ripple must pay an additional 10% annual return." The source also said, "If Ripple chooses to purchase the investors' shares first at the same time, a 25% annual return applies."

This contract structure is interpreted as reflecting institutional investors' concerns about XRP price volatility. Some institutions reportedly viewed a substantial part of Ripple's corporate value as stemming from the valuation of its held XRP and demanded risk-mitigation measures to prepare for possible price adjustments.

The investment agreement reportedly also included a 'liquidation preference' that allows new investors to recover their invested funds before existing shareholders in the event of major events such as a company sale or bankruptcy. It is assessed as a level of protective provisions rare even in traditional venture investing.

Ripple did not issue a separate statement on the terms. Bloomberg said, "This is an example of traditional financial institutions beginning to actively apply private equity-style risk management methods to investments in virtual-asset companies."