Linqto COO Says Ripple IPO Should Be in US But Can’t Be Part of Settlement Term

Joseph Endoso argues that Ripple IPO is unlikely to be part of a settlement with the SEC, noting that listing in the US will be more favorable.

In a recent Twitter Spaces conversation, prominent figures in the Ripple community discussed the possibility of Ripple’s initial public offering (IPO) being included as part of a settlement with the Securities and Exchange Commission (SEC).

The participants delved into the likelihood of such an agreement. They shared insights on why Ripple may lean towards a US listing for its IPO.

Pro-XRP Twitter user Digital Asset Investor shared a snippet of the conversation with the crypto community. 

Great conversation with @LindaPJones and @JosephEndoso from @linqtoinc on why @ripple will IPO in the United States. pic.twitter.com/QyM4VjU8AS

— Digital Asset Investor.XRP (@digitalassetbuy) July 17, 2023

Will IPO Be Part of Settlement?

Wall Street financial expert Linda Jones raised whether an IPO could be part of Ripple’s ongoing negotiations for a settlement. She further expressed concerns about the approval process, considering the presence of Gary Gensler, the Chairman of the SEC.

Joseph Endoso, the Chief Operating Officer of Linqto, a platform connecting investors to innovative companies, responded by explaining the procedural aspects of an IPO and its separation from the settlement process. 

He emphasized that Ripple must resolve the case with the SEC before filing the IPO registration statement. Endoso acknowledged that Ripple’s hesitance to file for an IPO was likely due to doubts about approval while the settlement was pending.

As The Crypto Basic reported today, the court has ordered Ripple and the SEC to agree on three suitable dates to organize a settlement panel if both parties believe such is workable at this time. Notably, the talk about a settlement arose as Judge Torres’ recent ruling granted victory to Ripple and the SEC in certain respects.

Will Ripple IPO be Abroad?

Endoso clarified that the need for additional capital in the market did not drive Ripple’s motivation for going public. Instead, the primary objective was to provide liquidity to the company’s long-term investors and shareholders.

The Linqto COO highlighted that many Ripple shareholders, except for SBI, were American entities. He noted that these investors would benefit from listing Ripple on a US exchange to maximize liquidity and obtain favorable valuations.

Drawing parallels with foreign companies in the US, Endoso explained how even major global economies ensured dual listings or American Depository Receipts (ADRs) to leverage the liquidity and optimal valuations available in the United States. 

He remarked: “If you look at every big economy in the world, China even, they’re all dual listed or have ADRs on US exchanges…, why because all those people realize that this is where the liquidity is maximized, this is where they get the best valuation.” 

Consequently, Endoso emphasized that it made strategic sense for a US-based company like Ripple to pursue a similar approach. Endoso also noted that the idea of Ripple going overseas was more mere negotiation than reality. He concluded that practically there is little to be gained by moving Ripple overseas or listing on foreign exchange. 

Notably, discussions around Ripple IPO have increased following the recent victory against the US regulator regarding XRP’s security status.