Real-time gross settlement system Ripple will consider going public with an IPO after it ends its current legal tussle with the SEC, according to Brad Garlinghouse.
Ripple CEO Brad Garlinghouse says that the crypto company is exploring the possibility of an IPO after its Securities and Exchange Commission (SEC) lawsuit ends. Garlinghouse’s comments come amid a fifteen-month lawsuit between Ripple and the SEC. In a media session he said:
“I think we want to get certainty and clarity in the United States with the US SEC. You know, I’m hopeful that the SEC will not slow that process down any more than they already have. But you know, we certainly are at a point in scale, where that is a possibility. And we’ll look at that once we’re past this lawsuit with the SEC.”
Ripple IPO Revelation Comes amid Crypto Underperformance
The Ripple CEO’s IPO comments also come amid a slump in digital currencies that has shaved off billions of dollars in market value. The most notable is the total crash of Luna, which suffered a UST-induced implosion about two weeks ago. In addition, CoinGecko data shows that XRP is down 42% in the last month.
The general malaise in the crypto industry also extends to the stocks tied to decentralized digital currencies. For instance, crypto exchange Coinbase stock (NASDAQ: COIN) has lost 75% this year. In addition, all-encompassing payments services platform Robinhood shares (NASDAQ: HOOD) are also changing hands 50% lower.
Despite the general underperformance of crypto and its derivatives, Garlinghouse maintains that Ripple continues to do well. The company’s CEO stated that cross-border payments product volume took an $8 billion haul for the first quarter. According to him, Ripple’s On-Demand Liquidity service – powered by XRP, registered $1 billion for the same period in 2021. However, Garlinghouse specified that the company’s growth is less visible in the U.S.:
“Our growth is almost all outside the United States. I think that’ll probably persist until we get the clarity and certainty in the U.S. we’ve been seeking.”
Ripple CEO Stance on General Crypto Survivability
Garlinghouse also touched on Ethereum co-founder Gavin Wood’s recent statement on how many digital currencies would not survive long term. This also seemed to reaffirm the Ripple CEO’s 2019 position that 99% of all crypto would eventually go to zero. “I would echo that,” were his words.
Ripple-SEC Lawsuit
The ongoing lawsuit is over allegations by the SEC that Ripple and two of its executives sold the platform’s native XRP tokens illegally in 2020. The accused Ripple executives are Garlinghouse and the company’s executive chairman Chris Larsen.
In addition, the regulatory agency classifies XRP as unregistered securities due to its crypto nature. XRP is currently the sixth-largest digital currency in the world and is used by Ripple to facilitate cross-border payments. The process works by first converting fiat to XRP, essentially reducing remittance costs and improving transaction speed. Afterward, the XRP token is then converted back to fiat.
Ripple has repeatedly said that XRP should not be classified as a security.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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