Ripple (XRP) is considering going public, according to CEO Brad Garlinghouse. However, he said the prerequisite is to conclude the legal proceedings with the U.S. Securities and Exchange Commission (SEC), which have been ongoing since the end of 2020.
Ripple is a promising candidate for an IPO, according to CEO Brad Garlinghouse. Garlinghouse made statements to that effect in an interview with TV channel CNBC during the World Economic Forum in Davos. Realistically, however, Garlinghouse also added that Ripple’s IPO plans might not mature until the mammoth XRP trial comes to an end.
The U.S. Securities and Exchange Commission (SEC) is suing over Ripple’s cryptocurrency XRP, which it says constitutes securities and therefore should not have been sold without permission. In addition to Ripple as a company, Garlinghouse and CEO Chris Larsen personally find themselves in the dock. Almost one and a half years after the start of the proceedings, the fronts remain hardened, but observers see the SEC increasingly on the losing track. A verdict is not expected until the end of 2022 at the earliest, while an out-of-court settlement is still not ruled out.
Ripple has specialized in international transfers for business purposes and also uses XRP as a bridge currency. The goal was and is to counter existing systems such as SWIFT with a fully digital alternative that saves fees and works much faster. From the banking sector, Ripple has always found recognition for its technology and also customers, who, however, mostly waived the optional XRP. Garlinghouse left open whether his thoughts on Ripple on the exchange would include XRP.
Ripple on the stock exchange – a lot of dreams for the future
Already in early 2020, Garlinghouse had ranted about bringing Ripple to the stock exchange. The major investor SBI Group even caused a stir during the ongoing XRP trial with the announcement that as soon as the trial was over, Ripple would be ready for the stock exchange. With this history, Garlinghouse’s recent comments are less spectacular than some have assumed.
It is more interesting to look at Ripple’s potential environment on the exchange. The US crypto exchange Coinbase, for example, had an overall successful stock market debut in New York in May 2021. However, from initial quotations of well over 300 US dollars, Coinbase shares have slipped to levels of just under 70 US dollars a good year later, with the lull in the crypto market and global economic uncertainties clearly leaving their mark. Neobrokers such as Robinhood have also lost considerable ground on the stock market in recent months. The trading platform eToro, on the other hand, has postponed its planned IPO again and again, and there are increasing rumors that the project has been called off for the time being. This is because the market and investors currently do not seem to be waiting for newcomers to the stock market who are associated with crypto.
Conclusion: Ripple dreams of future prospects – but XRP continues to brake block
In the CNBC interview, Garlinghouse also raves about XRP again, highlighting how well it is performing as a bridge currency outside of the US. In the price curve of XRP, however, this optimism is not reflected, about 50 percent minus stand there for Ripple since the beginning of the year to book. So it remains as usual: As long as the SEC complaint hovers over Ripple and XRP like a sword of Damocles, all future plans seem speculative.