Chinese AI mobility tech firm Webus International Limited announced its plans to raise $300 million through a non-equity financing method to bring an XRP strategic reserve. The company specializes in AI-backed mobility solutions, particularly for chauffeur services, and has come up with the idea to raise the amount to support its global chauffeur payment network.
How will Webus International leverage non-equity funding?
According to a press release, the company is not looking to issue new shares to raise the $300 million amount, however, it will perhaps leverage available cash reserves, shareholder guarantees, bank lending, and third-party institutional-backed credit facilities from traditional banks.
Through this non-dilutive financing system, the Nasdaq-listed firm intends to expand in the digital asset and cross-border payment industry and make its financial options open, support long-term growth, and protect the value of shareholder investment.
The financing method would provide support for three significant initiatives by the firm. These include launching strategic XRP reserve that enables fast and low-cost cross-border payments, a comprehensive blockchain infrastructure, and global expansion initiatives.
Webus is also renewing its partnership with Chinese online travel platform Tongcheng Travel Holdings to use the XRP Ledger for cross-border payments.
Following the announcement, Nan Zheng, Chief Executive Officer of Webus, said that the XRP blockchain integration can redefine how they handle cross-border payments for “both partners and travelers worldwide.”
The CEO further added: “Internationally, our potential XRP implementation can eliminate traditional payment friction, allowing instant settlement with chauffeurs and service providers worldwide while providing immediate refunds when needed.”
What is a crypto strategic reserve?
A crypto strategic reserve is a stored collection of a specific or mix of crypto assets held by a company in order to support long-term goals, financial strategies, or operations. Typically, a crypto strategic reserve is created to support payments, enable liquidity, maintain operations, and is used as a hedge against inflation.
