Ripple CEO Says Ripple is Focused on Acquiring Companies, Not Pursuing IPO

Ripple CEO Brad Garlinghouse discloses that the blockchain infrastructure company is focused on acquisitions rather than pursuing an IPO. 

Garlinghouse emphasized this during an interview with Bloomberg TV, where he shed light on the company’s future trajectory. According to him, Ripple is gearing up to acquire complementary blockchain infrastructure companies after growing its business organically. 

This suggests that Ripple has successfully expanded its operations, revenues, and customer base through its payment solution without relying on external funding. 

Ripple Is Focused on Acquisitions, Not IPO 

Following this success, he disclosed that Ripple is now focused on acquiring companies that will complement its business. 

While he declined to mention any target companies, Garlinghouse said Ripple is interested in acquiring firms that provide ‘core blockchain infrastructure,’ similar to what it does. 

Garlinghouse made the statement when Bloomberg’s lead global finance correspondent, Sonali Basak, suggested that Ripple appears to be prioritizing acquisition over an IPO. When the Bloomberg reporter made this assertion, Garlinghouse nodded in affirmation. 

IPO Plans 

There have been speculations about Ripple’s plans to pursue an IPO in the United States. This debate gained momentum in 2023, with several analysts, like Linda Jones, predicting that the company might go public through an IPO by 2025. 

However, Garlinghouse dismissed the rumors about a planned IPO. As previously reported, Garlinghouse noted that it would be difficult for the company to go public while it was still embroiled in a legal battle with the U.S. SEC. 

He suggested that the SEC may not approve Ripple’s request for an IPO due to the lawsuit. In the meantime, the lawsuit is close to its conclusion as the parties are currently negotiating a settlement. 

Despite this, Ripple is focused on acquiring other companies rather than pursuing an IPO in the United States, as Garlinghouse suggested. 

Ripple Reportedly Offers to Buy Circle 

For context, this Bloomberg interview took place in March, shortly after Garlinghouse disclosed that the SEC had dropped its appeal. However, the interview resurfaced online following reports that Ripple offered to buy USDC stablecoin issuer Circle for $5 billion. 

However, Bloomberg reported that Circle rejected the offer because it was too low. The news comes several weeks after Circle submitted a filing to the SEC to go public. 

Commenting on the development, a Circle spokesperson disclosed that the company was in a ‘quiet period with the SEC’ and did not wish to discuss market rumors or its financial plans. On the other hand, Ripple has not issued an official statement about the development. 

Meanwhile, Ripple has made significant progress in its acquisition plans. Last year, it expanded its footprint in the custody sector by acquiring Standard Custody & Trust Company. Last month, it also reached an agreement to acquire leading prime brokerage company Hidden Road for $1.25 billion.