Wall Street Hedged Big Crypto Bet in $500 Million Ripple Deal

Ripple’s $500 million share sale in November drew some of Wall Street’s biggest names and marked a milestone in crypto’s evolution from fringe asset class to mainstream finance. Investors including Citadel Securities LLC and Fortress Investment Group backed the firm at a $40 billion valuation, a record for a privately held digital-asset company.

But the structure of the deal also highlights the careful approach some institutional investors are taking as they wade deeper into the volatile sector. It included crucial protections: the right to sell shares back to Ripple at a guaranteed return and preferential treatment should a major ...