Ripple To Explore IPO After SEC Lawsuit Ends

May 25, 2022 11:14 am

Ripple CEO Brad Garlinghouse has stated that the company will be exploring a public IPO once the current SEC lawsuit finally comes to an end.

The statement was made while Garlinghouse was at the World Economic Forum in Davos which is held annually and had a particular focus on crypto this year.

The lawsuit, which has gone on for around 15 months, continues to debate whether or not XRP is considered a security which the company has argued against.

Ripple has recently already achieved a record $15 billion valuation earlier in the year and the launch of a new IPO make make that number skyrocket even more.

CNBC reports:

The lawsuit has been going on for nearly 15 months and Ripple expects it to end this year. After that, the company will look into a public listing.

“I think we want to get certainty and clarity in the United States with the U.S. SEC. You know, I’m hopeful that the SEC will not slow that process down any more than they already have,” Garlinghouse told CNBC during the World Economic Forum in Davos.

“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.”

“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,” Garlinghouse said.

The release of such news comes during a time when the overall crypto market is suffering from a bearish trend which has persisted for most of the year.

The market slump coincides with the bearish slump in other markets as well which includes the stock market which may have been affected due to inflation fears and overall concerns about the health of the economy.

Despite all of this, Garlinghouse has reaffirmed that the crypto firm has been able to prosper throughout all of this as demand for Ripple’s ODL service has skyrocketed compared to last year.

The on-demand liquidity totaled to around $1 billion last year and this year has already recorded liquidity that amounted to roughly $8 billion.

MarketWatch reports:

The CEO of Ripple, which is the issuer of the eponymous cryptocurrency XRP USD XRPUSD, -0.85%, will weigh a potential initial public offering after its lawsuit with the Securities and Exchange Commission ends, the CEO of the company told CNBC-TV at Davos.

Ripple CEO Brad Garlinghouse said the company is now “at a point in scale” where an initial public offering is a “possibility.”

In November, Ripple said it’s making progress and expects a suit by the SEC to resolve by the end of 2022.

The SEC has charged Ripple with selling $1.3 billion in XRP cryptocurrency in an unregistered securities offering, but Ripple maintains that the XRP is not a security. XRP is currently one of the largest cryptocurrencies in the world.

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