Ripple (XRP) likely to go public after its legal battle with SEC is over, CEO confirms ๐จ This article is 3 years old...
Ripple (XRP) likely to go public after its legal battle with SEC is over, CEO confirms
CEO Brad Garlinghouse has confirmed that Ripple (XRP) is likely to go public "at some point"โbut not before its legal dispute with the SEC comes to a conclusion.
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Updated: May. 27, 2021 at 11:13 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The likelihood of Ripple, the company behind the XRP token and blockchain-based payments network RippleNet, to go public is โvery high at some pointโโbut not before its legal battle with the U.S. Securities and Exchange Commission (SEC) is resolved, said the firmโs CEO Brad Garlinghouse.
โThe likelihood that Ripple is a public company is very high at some point. In the middle of an SEC lawsuit, you know, we need to get that closed out,โ Garlinghouse remarked during CoinDeskโs Consensus 2021 event yesterday.
โThe good news was the court did grant Rippleโs motion,โ he added. โAll weโve asked for, for two to three years, is that regulatory clarity, and so I think this is progress.โ
Waiting for the case to resolve
As CryptoSlate reported, the SEC filed a lawsuit against Ripple Labs and its executivesโCEO Brad Garlinghouse and executive chairman Chris Larsenโin late 2020. The regulator alleged that defenders have โraised over $1.3 billion through an unregistered, ongoing digital asset securities offeringโโin the form of XRPโ since 2013.
Notably, rumors about Rippleโs plans to conduct an initial public offering (IPO) have already been floating around since late April. Namely, Yoshitaka Kitao, CEO of Japanese financial services firm SBI Holdings which has a stake in Ripple, said that an IPO would pay off the groupโs investment.
โAfter the current lawsuit, Ripple will go public. The current CEO wants to do this. Chris [Larsen] wants to do this. We have been investing in fintech companies, and we adopt that technology in our group, and also we spread that technology across the industry. That is SBI Groupโs basic strategy,โ Kitao said at the time.
Business as usual
Meanwhile, the ongoing legal battle with the SEC didnโt stop Ripple from signing new partnerships with foreign companies, Garlinghouse noted.
โIn fact, the United States is the only country around the world that has XRP as a security, every other country in which we work, they view it as a currency,โ he pointed out.
However, Garlinghouse also acknowledged that Ripple had to โpauseโ its relationship with MoneyGram, a major U.S. payments processor, following the SECโs lawsuit.
โMoneyGram and Ripple had a consequential relationship which represented a couple billion dollars of ODL [on-demand liquidity] transactions. Weโve paused that partnership in hopes of getting clarity,โ Garlinghouse explained.
Indeed, just a few days after the SEC filed its lawsuit, MoneyGram has swiftly distanced itself from Ripple, claiming that it โdoes not utilize the ODL platform or RippleNet for direct transfers of consumer fundsโ and โis not a party to the SEC action.โ
โThis is about more than just Ripple. This is about more than just XRP. It really does have implications for all of crypto here in the United States,โ Garlinghouse concluded.
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Liam Frost
Liam Frost is a freelance journalist and editor with over 15 years of experience working for various media outlets across the world.
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Theย XRP Ledgerย is a decentralized cryptographic ledger powered by a network of peer-to-peer servers.
Ripple
Ripple is a US-based technology company which develops the Ripple payment protocol and exchange network using XRP, the digital asset native to the XRP Ledger.
Brad Garlinghouse stands at the forefront of financial technology as the CEO of Ripple.
