Ripple Could Delegate xBorder to a Subsidiary After IPO, Making XRP Autonomous

Amid projections that Ripple may be gearing up for an initial public offering (IPO), XRP influencer WrathofKahneman (WoK) speculates on the firm’s potential restructuring and the fate of XRP in such a context.

Hypothetically, WoK posits in a recent tweet that Ripple could transition its cross-border payment operations to one or more subsidiary companies should the payment firm decide to go public. According to Wok, the strategic move would serve to streamline payment licensing. 

Hypothesis: If/When #Ripple IPOs, they eventually move xborder payments to a subsidiary(ies), making paymnt licensing cleaner, detaching the brand from #XRP somewhat, as the main co markets for crypto infra. It'd be a change from the old claims of "Ripple is a payments co". 1/

— WrathofKahneman ? (@WKahneman) October 13, 2023

Notably, his sentiment stems from the belief that Ripple could easily expand into new markets with partner firms simplifying regulatory approvals. 

Ripple Brand Detaching from XRP

Moreover, WoK theorized that Ripple moving cross-border payments to subsidiaries post-IPO would simultaneously create a degree of separation between its brand and XRP.

Furthermore, the prominent influencer contended that the shift would represent a notable departure from Ripple’s historical positioning as a payments company. In WoK’s view, such a transformation may pave the way for XRP to function as an autonomous entity, focusing exclusively on developing its payment services. 

Additionally, WoK raised the prospect of locating the subsidiary company outside of the United States. He believes such an initiative potentially takes advantage of tax benefits that result from an international registration.

In parallel, he mentioned that the Ripple subsidiaries would have the capacity to acquire smaller remittance companies independently without requiring Ripple’s shareholders’ approval. 

Community Reacts

Expectedly, WoK’s post has generated substantial interest within the XRP community. They ponder the potential implications of such a hypothetical scenario for Ripple and XRP. 

Yassin Mobarak, founder of Dizercapital, expressed agreement with WoK’s view. On the other hand, an XRP enthusiast suggested that XRP could be renamed to dissociate from Ripple. WoK expressed skepticism at such happening, noting it “would be structurally hairy.”

Besides, WoK speculated whether RippleX will continue to operate under the umbrella of the company’s headquarters or become integrated within the framework of a payments subsidiary.

It is worth mentioning that these views remain speculative, as they may not represent Ripple and XRP’s true future trajectory.