Matthew Rosendin, the CEO of CapSign, has introduced a new on-chain private equity fund holding Ripple stock on the forthcoming XRPL EVM Sidechain.
According to a disclosure from Rosendin today, the fund holds 4.7 million Ripple shares from Linqto, which last sold for $125 each, putting the estimated value at over $580 million. Rosendin says this marks the first time a DAO structure will hold real private equity at this scale.
CapSign Uses Smart Contracts to Power the Onchain Fund
For context, CapSign set up the fund using Delaware Series LLCs. Each one acts as its own legal entity and is powered by smart contracts. These contracts issue governance tokens to investors, who can then vote on proposals, approve or reject share sales, and help oversee the fund manager.
Speaking further, Rosendin explained that each investor can take part in major decisions and see exactly how the fund operates in real time.
CapSign also built a live dashboard for investors. Importantly, the dashboard shows the estimated value of shares, each investor’s ownership, active proposals, and updates from the fund manager.
📊 Live Dashboard + Investor Portal
Full investor dashboard with:
• Estimated share value
• Ownership balance
• Governance proposals
• Transparent updates
Built on the CapSign stack for clarity, accountability, and next-gen capital markets infrastructure.— matt 🇺🇸 (@MattRosendin) July 7, 2025
Decentralized Governance
Investors can ask questions, request more details, or vote on how often they want reports. According to Rosendin, the goal is to give investors full visibility and control without middlemen.
Importantly, investors will get to keep full ownership of their tokenized units. The process will use smart contracts to record each unit, and transfers will follow the fund’s rules.
Rosendin pointed out that although the system includes admin keys for legal reasons, they don’t give anyone access to investor assets. He also confirmed that California Capital Advisors LLC will manage the fund. The firm plans to register as an Exempt Reporting Adviser.
If the bankruptcy trustee overseeing the Linqto estate approves the plan, accredited investors can move their locked holdings into this new structure. CapSign will run a fresh accreditation process and issue blockchain credentials to verified investors.
The XRPL EVM Sidechain Will Host the Fund
Rosendin believes the forthcoming XRPL EVM Sidechain is the right place to host the fund. Specifically, it uses XRP for gas, keeps fees low, and supports public verification. He said the fund could grow into a major part of XRPL’s total value locked and could help determine the future of how private equity works onchain.
He also shared examples of how the governance process will work. For instance, investors can vote on buyback offers from Ripple, approve or reject private sales, and even replace the fund manager if needed. They can also adjust legal terms or update who can vote. Every major decision stays in the hands of the tokenholders.
Notably, Crypto Eri, a prominent XRP community figure, reacted positively. She said the plan shows real drive from the XRP community. Eri also noted that this approach to private equity, using Ripple shares as the base, could mark a turning point if the Linqto bankruptcy estate approves it.
You gotta hand it to the pure entrepreneurial guts of the #XRP Community. Another DAO! 🎉 Yes, this will make history if the plan is approved by the bankruptcy estate private equity (SPVs) in the @linqtoinc estate.🤯 $580M
Do read the 🧵https://t.co/EmR8bQuUrp— 🌸Cryptos Eri ~ Carpe, Diem’s (@seuntosumosaba) July 7, 2025
Linqto Facing Legal Issues
However, the plan comes at a time when Linqto faces investigations from both the SEC and the DOJ. Regulators are looking into whether Linqto sold Ripple shares to non-accredited investors, inflated prices, and failed to explain that buyers weren’t getting direct ownership of Ripple stock. Instead, they bought units in SPVs holding the stock.
In February 2025, Linqto froze customer accounts. Reports say the company is preparing for Chapter 11 bankruptcy. Many investors still can’t access their holdings and may become unsecured creditors in the process. Reacting to the issues, Ripple CEO Garlinghouse recently confirmed that Ripple has no affiliation.
Despite these problems, Ripple shares have gone up in value. Ripple bought back some shares in June 2025 at $175 each. This could raise the value of Linqto’s Ripple stock to more than $800 million.
Notably, Rosendin’s plan presents a fresh start. Specifically, it gives investors a legal structure, clear ownership, and control they didn’t have before. Now, everything depends on whether the bankruptcy trustee allows the move forward.
Read the full article here
