A Ripple-backed investment firm has been hit by a sharp paper loss after the price of XRP retreated, underscoring the volatility that continues to define large institutional exposure to digital assets.
Evernorth, which holds a substantial position in XRP, is facing an estimated US$220 million in unrealised losses following the token’s recent decline, according to market data and investor disclosures tracked by analysts. The loss remains unrealised, meaning the firm has not sold its holdings, but it highlights the downside risks tied to concentrated crypto bets.
XRP, the token closely associated with Ripple’s cross-border payments network, has come under pressure in recent weeks amid broader weakness across the crypto market and profit-taking after strong gains earlier in the year. The pullback has erased a significant portion of XRP’s late-2025 rally, weighing heavily on firms with large balance-sheet exposure to the asset.
Evernorth’s position in XRP was built during a period of renewed optimism around Ripple, driven by regulatory clarity in key jurisdictions and growing institutional interest in blockchain-based payment infrastructure. However, the latest price slide has pushed the value of those holdings well below their acquisition cost, resulting in the sizeable mark-to-market loss.
Despite the setback, analysts note that unrealised losses do not necessarily indicate financial distress. Firms holding crypto assets long term often tolerate significant volatility, particularly when investments are tied to strategic partnerships or ecosystem growth rather than short-term trading gains. Evernorth has not signalled any immediate plans to reduce its XRP exposure.
The development comes at a time when institutional crypto investors are under closer scrutiny, especially after a series of high-profile losses across the sector in recent years. Risk management, diversification and transparent reporting have become central concerns for funds and corporates with digital asset holdings.
For XRP, the episode reflects a broader reality facing even well-established cryptocurrencies: regulatory progress and adoption narratives can support prices over time, but short-term movements remain highly sensitive to market sentiment, liquidity conditions and macroeconomic signals.
Whether Evernorth’s paper loss narrows or deepens will largely depend on XRP’s performance in 2026, as well as Ripple’s ability to convert partnerships and regulatory wins into sustained network usage and token demand.
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