(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.

(Reporting by Hannah Lang ‌in New York and Prakhar Srivastava in Bengaluru;‌ Editing by Sahal Muhammed)