Webus International, a premier global chauffeur service, is making a massive $300 million bet on the digital asset XRP. The Nasdaq-listed company announced plans yesterday to raise this substantial sum. Crucially, they aim to build a strategic XRP reserve. This move targets a major overhaul of how it handles international payments for rides and drivers. Furthermore, Webus intends to integrate XRP deeply into its operations. The goal is leveraging XRP’s speed for cross-border settlements. This could revolutionise payments across its worldwide luxury vehicle network. The China-based firm specialises in customised travel services globally.
The $300 Million Mission
So, what exactly is Webus planning? Primarily, the $300 million will establish a dedicated XRP reserve. This reserve acts as the financial engine. It will power Webus’s global chauffeur payment system. The core advantage? Enabling instant, ultra-low-cost international transactions. Moreover, this directly tackles currency conversion headaches. Both travellers and drivers face these friction points currently. Webus seeks to eliminate them entirely. The XRP Ledger’s settlement capabilities are central to this solution. They promise real-time fare processing and driver payouts worldwide.
A Shareholder-Friendly Approach
Critically, Webus emphasises this is non-equity financing. Therefore, existing shareholders avoid dilution. The company won’t issue new stock. Instead, it will utilise loans, credit lines, and shareholder guarantees. Internal cash reserves will also contribute funds. However, the plan remains non-binding currently. Final agreements and due diligence are still pending. Flexibility exists to potentially adjust the reserve size later. Market conditions will influence this decision. Webus CEO Nan Zheng stressed preserving equity value. The chosen financing structure supports this principle.
Beyond Simple Payments
Webus envisions XRP doing much more than just moving money. Its strategy includes embedding XRP’s tech into its ecosystem. For instance, they plan to record bookings directly on the blockchain. This creates secure, transparent on-chain records. Additionally, a Web3-based loyalty program is in development. This could involve unique digital tokens rewarding frequent users. Developing proprietary blockchain tools is another key objective. In-house digital wallets are part of this broader initiative. Ultimately, these steps aim to boost user engagement significantly.
Key Alliance
Webus is strengthening its existing partnership. They renewed a multi-year deal with Tongcheng Travel Holdings. Tongcheng is a giant among China’s online travel agencies. Together, they will expand their “Wetour x Tongcheng” branded charter lines across China. Furthermore, this collaboration is central to the XRP plan. Both companies will aim to utilise the XRP ledger. Specifically, it will settle payments for cross-border rides seamlessly. Driver payouts for these international trips will also flow through it. Tongcheng brings its massive user base—240 million annual paying customers. Webus contributes its premium vehicle network and tech.
CEO Perspective
Webus CEO Nan Zheng highlighted the strategic fit. “These developments create powerful synergy,” Zheng stated yesterday. He connected the Tongcheng partnership directly with the XRP integration. Their domestic China network gains strength through Tongcheng. Meanwhile, XRP integration tackles the international payments challenge. “It revolutionises cross-border payments,” Zheng emphasised. He sees benefits for partners and travellers across the globe. The combined approach aims to unify domestic infrastructure with global innovation.
Following a Growing Trend?
Webus isn’t pioneering this corporate XRP move alone. Its announcement follows similar news from VivoPower International. That Saudi Arabia-based firm secured $121 million recently. VivoPower also plans to build its own XRP Treasury. This signals rising corporate interest in XRP. Companies increasingly value it for real-world settlement layers. XRP ranks as the fourth-largest cryptocurrency by market cap currently. Despite these announcements, XRP’s price showed little immediate movement. A slight 0.5% dip occurred on May 30th. Broader market reaction seems muted so far.
Written By Fazal Ul vahab C H
