Ripple CEO Contemplating Non-U.S. IPO Until Gensler Assumes Chair Position
Ripple is considering the possibility of an Initial Public Offering (IPO) in overseas jurisdictions as it faces challenges from the U.S. Securities and Exchange Commission (SEC) regarding financial privacy. Ripple CEO Brad Garlinghouse expressed doubts about the feasibility of a U.S. IPO due to the leadership of SEC Chairman Gary Gensler. Garlinghouse predicts that the cryptocurrency market will have a valuation of $5 trillion and anticipates the arrival of an XRP Exchange-Traded Fund (ETF) in the near future.
The legal dispute between Ripple and the SEC has intensified as Ripple aims to keep its financial data confidential while the SEC pursues $2 billion in penalties related to XRP sales. During an interview at the 2024 Consensus Event, Garlinghouse hinted at the possibility of exploring overseas jurisdictions for an IPO, citing the current regulatory climate in the U.S. as a hindrance.
Garlinghouse mentioned that an IPO is not a priority for Ripple at the moment and expressed concerns about the SEC’s leadership under Gensler. He highlighted the need for SEC approval of Ripple’s S-1 registration statement for an IPO and questioned whether a favorable outcome could be expected. Garlinghouse criticized Gensler’s position, stating that it does not align with a progressive outlook.
As a result, Garlinghouse concluded that pursuing a U.S. IPO does not make sense for Ripple under the current circumstances. He emphasized that “going public in the United States for Ripple right now doesn’t make any sense.”
Data from Linqto shows that Ripple’s pre-IPO shares are currently trading at $50.69, a significant increase from last year’s $35. This represents a 1,242% surge in Ripple’s valuation. Such a substantial rise could potentially impact the price of XRP, although it is difficult to accurately predict the extent of this impact based on historical data. Currently, XRP is trading at $0.52, but if its price were to increase by the same 1,242% as Ripple’s shares, it would reach $6.63.
Garlinghouse also discussed the possibility of an XRP Exchange-Traded Fund (ETF) and expressed confidence in the market’s trajectory towards a $5 trillion valuation with the approval of the spot Ethereum ETF. He believes that the emergence of XRP, SOL, and other cryptocurrency ETFs is not a matter of if, but when.
In addition to ETFs, Garlinghouse revealed Ripple’s plans for institutional DeFi development. The goal is to introduce multi-purpose tokens that will enhance the utility and versatility of the Ripple ecosystem. By doing so, Ripple aims to position itself as a leading innovator in the cryptocurrency industry.