Ripple CEO Brad Garlinghouse has addressed the topic of a potential initial public offering (IPO) in light of the growing interest from the XRP community. During an interview with the Thinking Crypto podcast, host Tony Edward asked about the company’s plans for going public if the regulatory environment improves in the coming year. Garlinghouse clarified that an IPO is currently not a top priority for Ripple.
Garlinghouse explained that most companies pursue IPOs primarily to raise capital, but Ripple is in a unique position where financial strength is not a concern. He highlighted that Ripple has been able to make significant acquisitions and invest in various projects, including those related to XRP, without the immediate need for additional funds. This financial stability has allowed Ripple to deprioritize going public, as raising capital is not a pressing issue for the company.
In addition to financial considerations, Garlinghouse mentioned the ongoing tension between Ripple and the SEC as another factor contributing to the delay in IPO plans. He stated that the company is currently facing a hostile regulatory environment in the US, which further undermines the need for an IPO.
Garlinghouse assured that Ripple is focused on ensuring its shareholders have liquidity and are satisfied with their investments. He emphasized that while an IPO is not off the table, it is simply not a high priority for the company at the moment.
When discussing a potential timeline for an IPO, Garlinghouse suggested that even if Ripple were to shift its focus towards going public, it would still take at least a year for it to materialize. He also hinted that if Gary Gensler were to step down as the SEC Chairman next year, Ripple might consider prioritizing an IPO at that point. However, he stressed that even in the best-case scenario, executing an IPO would still require a year.
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