Compass Investments

Evernorth’s XRP digital asset treasury has filed crucial documentation with the SEC, bringing the company closer to its cherished goal of going public on the Nasdaq.

Corporation, founded by Ripple Labs, made its exchange aspirations public in October, announcing a merger with special purpose entity (SPAC) Armada Acquisition Corp. II (Armada II).

On Wednesday, Evernorth announced that it has filed a registration statement on Form S-4 with the U.S. Securities and Exchange Commission (SEC), the last significant oversight step before listing through SPAC.

If the SEC grants approval of the filing, Evernorth will have to obtain final approval from Armada II shareholders for the merger, after which a listing on Nasdaq under the ticker symbol XRPN will be possible.

In October, Evernorth projected that the merger would generate about $1 billion in gross proceeds, which would be primarily used to build up XRP reserves, with the remainder used to cover operating needs and related transaction costs.

Evernorth has already started accumulating its XRP reserve: according to CoinGecko, the total value of the company’s treasury reserves has reached $692.24 million, including 473.27 million XRP received in two tranches from October 20 to November 4.

With the average purchase price of XRP at $2.54, the value of these assets has fallen 19.1% over the past three months amid a general decline in the crypto market. XRP is trading at $1.47 at the time of filing.

Evernorth’s plans to build up reserves come after XRP was categorized as a digital commodity in guidance released by the SEC last Tuesday.

In a statement released Tuesday, the SEC emphasized that only tokenized securities are subject to securities laws.

Other tokens cited as digital commodities include Aptos (APT), Avalanche (AVAX), Bitcoin (BTC), Dogecoin (DOGE) and Ethereum (ETH). We have always been clear that XRP is not a security, and now @SECGov has clarified its status: it is a digital commodity. We appreciate the work of the Cryptocurrency Task Force in providing the clarity that markets, investors and innovators have long deserved, Ripple General Counsel Stuart Alderoti said in a post on X on Tuesday.