A U.S. Bankruptcy Court has cleared Linqto’s $130 million sale of Ripple equity, with Galaxy Digital taking the lead through a $60 million purchase, as the proceeds are set to fund customer repayments.
The court approved Linqto’s plan to offload roughly $130 million in Ripple Labs common stock to four institutional investors. Galaxy Digital accounts for the largest share at $60 million, followed by Arrington Capital with $50 million, the Private Shares Fund at $16 million, and GAM Alternatives Lux at $4 million. The funds will be directed into a Chapter 11 wind-down trust aimed at returning value to customers.
Rather than a straightforward distressed sale, the transaction underscores steady institutional interest in Ripple’s private-market equity across a wide pricing range. This comes as Linqto’s bankruptcy estate continues to unwind a platform that once provided retail investors access to pre-IPO opportunities.
The news coincided with a nearly 4% overnight rise in XRP, which climbed to $1.13 and broke above the $1.10 resistance level. Trading volumes also increased, reaching about $1.29 billion.
Ripple Equity Sale: Allocation, Pricing, and ROFR
Each of the four deals was executed at different per-share prices. Galaxy Digital secured the largest allocation at $60 million, while Arrington Capital contributed $50 million. The Private Shares Fund and GAM Alternatives Lux purchased smaller stakes of $16 million and $4 million, respectively.
Galaxy’s block is the largest in both share count and total value, based on summaries of the asset purchase agreements. Ripple waived its right of first refusal (ROFR) for Galaxy’s portion, allowing the deal to proceed without co-sale adjustments.
Galaxy’s entry price appears lower than that of the other investors, reflecting the size of its allocation and the nature of distressed secondary-market deals. This approach aligns with Galaxy’s history of building Ripple exposure during periods of market dislocation.
This transaction is purely a secondary equity sale. It does not signal an IPO and has no direct impact on XRP holders or the token’s economics. Ripple’s investor materials from November 2025 also clarified that such equity trades do not affect XRP.
Linqto Bankruptcy: Background and Forge Dispute
Linqto shut down operations in March 2025 and filed for Chapter 11 bankruptcy in July 2025 after new management identified potential securities law violations dating back to 2020. These issues were linked to the use of special-purpose vehicles that pooled customer investments.
The bankruptcy estate includes stakes in around 111 private companies, with a combined valuation exceeding $500 million. On February 6, 2026, the court approved Linqto’s restructuring plan, which had about 95% customer backing. The plan offers recovery options through a liquidating trust, a publicly listed closed-end fund holding private shares, or a mix of both.
However, the recovery process has hit a new challenge. According to Bloomberg Law, Linqto and its Official Committee of Unsecured Creditors have filed a lawsuit against Forge Global Holdings after it attempted to step down as trustee just five days before the planned July 20 launch.
Forge cited instructions from its parent company, Charles Schwab, as the reason for withdrawing. It had been responsible for holding customer assets, managing share transfers, and administering the recovery process.
The court is now being asked to require Forge to fulfill its obligations. While the dispute could delay asset transfers and increase legal costs, it does not affect the validity of the Ripple share sale or XRP’s value. For Linqto users, the main concern is timing rather than the integrity of the assets.
Institutional Takeaways: What the Pricing Spread Means
The structure of the sale, involving four buyers with varying allocations, highlights Galaxy Digital’s dominant role through its $60 million commitment. The discount on its purchase likely reflects the scale of the deal and the dynamics of a distressed secondary transaction, rather than a negative view on Ripple’s valuation.
Continued institutional demand at these price levels—alongside Ripple’s goal of reaching a $1 billion revenue run rate by 2026—suggests that its private-market valuation remains resilient even under bankruptcy-driven selling pressure.
This transaction is likely the first of several. As the wind-down trust continues to monetize its broader portfolio of 111 companies, more large institutional sales could follow.
