Ripple CEO Brad Garlinghouse has clarified the company’s stance on a potential initial public offering (IPO) amid growing interest in the XRP community.
In an interview with the Thinking Crypto podcast, host Tony Edward asked about the possibility of going public if the regulatory environment improves next year. Garlinghouse made it clear that an IPO is not currently a major focus for the company. “An IPO has not been a high priority for us,” he said.
Why Ripple Is Not Prioritizing an IPO
Garlinghouse explained that most companies pursue IPOs primarily to raise capital, but Ripple is in a unique position where financial strength is not an issue. He pointed out that Ripple has been able to make key acquisitions and continue investing in various projects, including those related to XRP, without the immediate need to raise additional funds.
This financial stability has allowed Ripple to deprioritize going public, as raising capital isn’t a pressing concern.
In addition to financial considerations, Garlinghouse mentioned the ongoing tension between the SEC and Ripple as another factor pushing IPO plans further down the line.
“We have a hostile SEC and regulatory environment in the U.S. Second, we don’t need to raise capital, so the idea of going public has been on the back burner,” he said.
Meanwhile, Garlinghouse noted that the company is ensuring its shareholders have liquidity and are satisfied, and that Ripple is valued appropriately. He emphasized that while the company isn’t ruling anything out, an IPO is simply not a high priority.
Timeline for a Ripple IPO
Garlinghouse hinted that even if Ripple decided to focus on an IPO, it would still take at least 12 months to materialize.
Furthermore, he noted that if Gary Gensler were to step down as SEC Chairman next year, Ripple might consider prioritizing an IPO at that point. However, he stressed that executing would likely still take a year. He described this prospect as the best-case scenario for an IPO.
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