Rosendin has announced that an onchain fund now holds 4.7 million Ripple shares, purchased via Linqto at $125 each, valuing the stake at over $580 million. According to Rosendin, this is the first time a decentralized autonomous organization (DAO) will manage private equity of this scale.
CapSign structured the fund using Delaware Series LLCs, each acting as a separate legal entity. Smart contracts power the structure, issuing governance tokens to investors. These tokens allow holders to vote on proposals, authorize or reject share sales, and oversee the fund’s operations directly.
Investors Gain Real-Time Visibility and Control
Rosendin emphasized that investors will enjoy full transparency. Each participant can view the fund’s performance, monitor ownership, and track proposals through a live dashboard. They can also vote on how often they receive reports or request further details from the fund manager.
The fund will utilise smart contracts to record ownership and transfer rights by its internal rules. While admin keys exist for legal compliance, Rosendin clarified they do not provide access to investor assets. California Capital Advisors LLC will manage the fund and plans to register as an Exempt Reporting Adviser.
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If the bankruptcy trustee approves, accredited investors can transfer their frozen Linqto shares into the new structure. CapSign will handle re-accreditation and issue blockchain-based credentials to verified participants.
XRPL EVM Sidechain Chosen for Efficiency
Rosendin confirmed the XRPL EVM Sidechain will host the fund. He praised its use of XRP as gas, low fees, and public auditability. He believes the project could significantly increase XRPL’s total value locked (TVL) and redefine onchain private equity.
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Under this model, tokenholders control major decisions. They can approve Ripple buybacks, reject private sales, amend legal terms, or even replace the fund manager. According to Rosendin, this hands-on approach puts power directly in investor hands.
Crypto Eri, a well-known XRP supporter, praised the plan. She called it a potential turning point, provided the trustee gives the green light. However, this development comes amid SEC and DOJ investigations into Linqto’s operations. Authorities are investigating allegations that Linqto sold Ripple shares to unqualified investors and misrepresented the ownership terms.
Linqto’s Legal Trouble and Ripple’s Disassociation
In February 2025, Linqto froze customer accounts and is now preparing for Chapter 11 bankruptcy. Many investors remain locked out of their assets and may end up as unsecured creditors. Ripple CEO Brad Garlinghouse confirmed the company has no links to Linqto.
Despite the turmoil, Ripple shares rose. In June 2025, Ripple repurchased shares at $175 each, pushing Linqto’s Ripple holdings’ value beyond $800 million. Rosendin believes this new fund offers a fresh path one backed by legal clarity, smart contracts, and investor empowerment. Now, the project’s future hinges on the trustee’s approval.
