Webus International Limited, a company that offers AI-powered, high-end chauffeur services worldwide, has signed an agreement with Ripple Strategy Holdings for a $100 million line of credit. This initiative has been taken to expand the use of the firm’s XRP in payments by blockchain.
This deal will allow Webus to borrow money over two years, but only if they meet certain conditions, like getting approval from the U.S. Securities and Exchange Commission (SEC) and their current underwriter.
According to the press release, the firm can borrow the amount between $250,000 and $3 million at a time, depending on the firm’s needs and how the market looks. The deal is set up to be fair to shareholders, with pricing that matches the market and protects against losses.
The money will help Webus grow its use of XRP for things like payments, loyalty programs using blockchain technology, and expanding into markets like North America and Asia-Pacific. This will also help them lead in using crypto for premium transportation services.
Nan Zheng, Webus’s CEO, said this $100 million deal shows trust in their XRP plans. It allows them to borrow money only when necessary, without harming shareholders, and will help them to grow faster in key regions while staying a leader in crypto-based mobility solutions.
However, the deal still requires the approval from the U.S. SEC for a resale registration statement and getting written permission from Webus’s main underwriter. This setup shows that Webus is serious about using cryptocurrency and blockchain technology to improve its high-end chauffeur services while being careful about managing its money.
On June 4th, the company submitted documents to the US SEC, disclosing plans to establish a $300 million treasury dedicated to XRP, the digital token associated with Ripple’s blockchain.
Also Read: Ripple and XRP Poised to Lead New Global Monetary System: Analyst
