A U.S. Bankruptcy Court has greenlit the sale of roughly $130 million worth of private Ripple shares held by the bankrupt pre-IPO platform Linqto. The transaction, approved as part of Linqto’s Chapter 11 restructuring, sees four institutional buyers dividing the block, with Galaxy Digital anchoring the deal at $60 million. Arrington Capital follows with $50 million, while The Private Shares Fund and GAM Alternatives Lux acquire $16 million and $4 million, respectively.
The allocations come with different per-share pricing, with Galaxy’s $60 million block sitting at a discount relative to the other buyers — a reflection of its larger size and the distressed secondary negotiation rather than a divergent view of Ripple’s intrinsic value. Ripple waived its right of first refusal (ROFR) on Galaxy’s portion, clearing the path without co-sale complications.
This equity trade does not confer any direct impact on XRP holders or tokenomics. Nevertheless, the market reacted swiftly: XRP surged nearly 4% overnight to trade at $1.13, breaking above the $1.10 resistance, with daily volumes climbing to $1.29 billion. The price action underscores that institutional appetite for Ripple’s private-market equity is being read as a bullish signal for the broader XRP ecosystem.
The shares originate from Linqto’s LiquidShares portfolio, which held stakes in 111 private companies valued at over $500 million. Linqto shut down in March 2025 and filed for Chapter 11 in July 2025 after new management uncovered potential securities-law violations dating to 2020. A restructuring plan confirmed in February 2026 with 95% customer support offers recovery through a liquidating fund, a publicly listed closed-end fund, or a hybrid.
Complicating the distribution timeline, Linqto and its Official Committee of Unsecured Creditors have sued Forge Global Holdings. Forge, expected to serve as trustee of the customer recovery trust, attempted to withdraw just five days before its July 20 launch, citing pressures from its new parent company Charles Schwab. Linqto is asking the court to compel Forge to honor its agreement; a failure to do so could push customer distributions into late 2026.
Proceeds from the Ripple share sale will support the wind-down trust and customer recoveries. The transaction stands as the largest single asset disposition in Linqto’s bankruptcy, and it likely paves the way for further institutional monetization of the estate’s sprawling private-company portfolio.
