Nov 5 (Reuters) - Ripple has raised $500 million in a

strategic investment valuing it at $40 billion, the crypto firm

said on Wednesday, in a funding round led by Fortress Investment

Group and Citadel Securities.

The investment comes on the heels of Ripple's $1 billion

tender offer earlier this year at the same valuation, the

company said.

In the wake of the GENIUS Act, which created a regulatory

framework for stablecoins, more institutions are adopting

stablecoins such as Ripple USD (RLUSD) for treasury payments and

collateral management.

Fintechs and traditional financial firms are increasingly

turning to stablecoins to streamline cross-border payments,

speed up settlements and broaden access to digital finance.

Ripple, which provides crypto solutions for businesses, said

the fresh capital would help deepen relationships with financial

institutions and support its expanding product suite, which now

includes custody, stablecoins, prime brokerage and corporate

treasury services.

Under the more crypto-friendly Trump administration, Ripple

aims to expand institutional use of its XRP token and deepen its

footprint in capital markets.

"This investment reflects both Ripple's incredible momentum,

and further validation of the market opportunity we're

aggressively pursuing," said Ripple CEO Brad Garlinghouse.