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Recently, Florida-based Wellgistics Health, Inc, a pharmaceutical distribution and healthcare company filed with the U.S. SEC to adopt XRP for its treasury management. It aims to become the first publicly traded U.S. Healthcare company to hold XRP as part of its financial reserves.
Earlier in May, the company had secured a $50 million Equity Line of Credit (ELOC) from LDA Capital to support its XRP adoption plans. Wellgistics plans to issue debt securities or raise capital in other ways to gradually expand its XRP holdings.
Beyond Treasury, Is This Real Business Utility?
It also plans to integrate blockchain-based payment systems by leveraging the XRPL. A key part of this strategy is using XRP as collateral for loans to improve the company’s financial stability.
Attorney Bill Morgan notes that Wellgistics Health’s recent SEC filing is not just about holding XRP as a treasury reserve. The company’s plan reveals a multi-dimensional strategy that puts XRP to serious use in its business operations.
It plans to use XRP for real-time payments with pharmacies and vendors via the XRPL, showing true business utility. It will also raise capital to buy more XRP, use it as collateral in deals, and even generate income from its holdings.
However, Wellgistics’ plan to use XRP has people asking if it’s a real strategy or just a way to get investor attention. Some are asking why a healthcare company like Wellgistics would use XRP, often called the “bankers coin.” Bill Morgan responded, saying it’s exactly the right question to ask.
Flipping the XRP Narrative
Marc Fagel, a former SEC official, also joined in and pointed out that Wellgistics has low revenue, net losses, few assets, and even a “going concern” warning from its auditor. That raises doubts that could this be more about attracting investors than a real business plan?
While Morgan admits that this is possible, he also sees it as part of a bigger trend. Other firms like Tesla, MicroStrategy, and Meitu have already used crypto, mainly Bitcoin, for treasury.
One user raised a question if Wellgistics chose XRP expecting it to outperform cash like Michael Saylor’s Bitcoin strategy, or is it about using XRP for liquidity in a new payment system. Morgan said that it may likely be both.
The company’s filing may have just flipped the script on the “XRP has no utility” narrative. Morgan made a solid point that the real value will show if Wellgistics actually uses XRP for payments with suppliers and customers. But if it’s just about using XRP as a buzzword to raise capital, then the utility argument falls flat.ac
