Why We Invest in Digital Exchanges

Digital money exchanges are becoming a core part of how people move, store, and diversify money. Where traditional banking rails can take days and multiple intermediaries to settle a cross-border payment, blockchain-based networks aim to do it in seconds, and often at a fraction of the cost. Two companies in our investment portfolio, Ripple (the company behind the XRP Ledger) and Uphold (a multi-asset digital wallet and exchange platform) demonstrate the value of investing in these

The Appeal of Digital Exchanges

Traditional banking can involve several intermediary banks, each taking a cut and delaying transactions. Blockchain settlement networks are built to compress that into near-instant transactions with lower fees, which is particularly attractive for remittances and business-to-business payments.

Accessibility is also a key factor. Anyone with an internet connection and a smartphone can access a digital exchange, without needing a traditional bank account or credit history. This has made these platforms popular in regions with less developed banking infrastructure. Digital assets also behave differently from stocks, bonds, and cash, which is why some investors hold a small allocation as a diversification tool rather than a core position. That said, correlations between crypto and equity markets have increased at times, so this benefit isn't guaranteed. There's also the additional benefit of transparency, as many of these assets run on public ledgers. Transaction flows can, in principle, be independently verified, which traditional finance doesn't always offer.

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Case Studies: Ripple and Uphold

Ripple built its business around solving slow and expensive cross-border transactions. Its RippleNet network connects banks and payment providers, and XRP is designed to act as a bridge asset that can move value across currencies quickly. The XRP Ledger also burns a small amount of XRP with every transaction, which gives it a mildly deflationary supply mechanic.

On the institutional side, Ripple Labs remains the single largest holder of XRP, controlling roughly 38 to 40 billion tokens (close to 40% of total supply) across its escrow and operational wallets. That concentration is a structural feature of XRP worth understanding, since large wallet movements can affect liquidity and price.

Uphold has positioned itself as a multi-asset exchange. The platform allows users to exchange XRP with dozens of other currencies, commodities, and digital assets, including exchanging XRP alongside various fiat currencies and precious metals. This feature is part of its appeal for people who want to move between asset types without juggling several platforms.

Uphold also emphasises custody transparency. The company states it holds around 90% of its crypto in cold storage and offers full reserve backing of member funds. On the scale side, Uphold has become a significant XRP custodian: the platform holds more than 1.5 billion XRP in custody, among the largest single wallets on the ledger, although it's worth noting these are customer deposits the platform manages, not a corporate treasury position.

Digital money exchanges like Uphold, and networks like Ripple's, offer real advantages in speed, accessibility, and access to a wider range of asset types. We invest in these platforms because they help democratise financial services and integrate new technologies into the sector.