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Brad Garlinghouse, Ripple CEO, recently appeared on a podcast called “Thinking Crypto,” where he shared his thoughts on an Initial Public Offering (IPO). Garlinghouse maintained that an IPO was not a high priority for Ripple.
However, Jake Claver, a Web3 expert, has analyzed the impact that a public listing could have on Ripple in a post on X. Claver believes the ripple effect on the broader cryptocurrency sector would position Ripple as a giant in the ecosystem.
Will IPO transform Ripple to "SWIFT 2.0?"
Claver noted that Ripple is already a major force in cross-border payments. By using XRP for faster and cheaper alternatives to traditional payment channels like SWIFT, an IPO could upgrade it to "SWIFT 2.0."
Gamza KhanzadaevThis will operate seamlessly since Ripple provides services to over 300 financial institutions globally. Claver believes that Ripple could expand beyond its blockchain solutions if it goes the way of an IPO. He compares the impact on the crypto space to Amazon’s success after its 1997 IPO listing.
The Web3 expert says Ripple has an appetite for expansion, as shown by its recent acquisition of Metaco. Therefore, an IPO could fast-track Ripple’s growth into other areas of the crypto world. He listed these to include tokenized securities, decentralized finance (DeFi) and real-world assets (RWAs).
Claver argues that such a move will boost the legitimacy of the crypto industry, the same way Amazon made e-commerce a thing. He believes an IPO will signal to banks, institutional investors and even regulators that blockchain technology has come to stay as a disruptive force in global finance.
Challenges of Ripple going public
Additionally, a listing might be a turning point for the lingering legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). Claver insists that with the recent favorable court rulings for Ripple, an IPO listing might be easy to secure from the regulatory authority.
Alex DovbnyaAnother notable advantage of an IPO for Ripple is in the area of research and development. With the capital it would raise, Ripple could channel some to improve its XRP Ledger and explore new applications in blockchain. This, in turn, might influence other blockchain companies to go public.
Despite Claver’s argument, some suggest that going public will make Ripple accountable to shareholders. The fear expressed here is that Ripple might not have control over who buys its shares and could slow down the blockchain's development and growth.
Arman Shirinyan
Alex Dovbnya
Vladislav Sopov
Dan Burgin