Ripple Rules Out 2025 IPO, Focuses on Acquisitions

Ripple, the blockchain payments firm, has officially ruled out plans for an Initial Public Offering (IPO) in 2025. This confirmation comes from Ripple President Monica Long, who stated in an interview that the company has no intention of going public in the near future. Long emphasized that Ripple is financially stable with sufficient cash reserves, making an IPO unnecessary for capital or visibility.

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Ripple's decision to remain private aligns with its strategic focus on growth through acquisitions rather than public listing. This approach was further highlighted by the company's recent acquisition of Hidden road, a global prime brokerage firm, for $1.25 billion. The acquisition is aimed at strengthening Ripple's financial infrastructure services, which include global payments, token custody, and asset tokenization tailored for enterprise use.

Long disclosed that the deal with Hidden Road is a strategic move to enhance Ripple's core mission and integrate XRP, RLUSD (Ripple’s stablecoin), and other digital assets into enterprise-level solutions. The acquisition supports Ripple's strong liquidity management, regulatory compliance with over 60 licenses, and complete control over payment flows.

Ripple's decision to stay private also reflects its commitment to building a robust infrastructure without the pressures associated with public market expectations. CEO Brad Garlinghouse echoed these sentiments, confirming that Ripple will continue to focus on acquisitions and internal growth rather than seeking public market capital.

The company's financial stability and strategic acquisitions underscore its confidence in its business model and future prospects. By remaining private, Ripple can continue to innovate and expand its services without the scrutiny and volatility that often accompany public listings. This approach allows the company to maintain control over its strategic direction and focus on long-term growth.

Ripple's financial strength enables it to operate without requiring the public issuance of shares. The company made a share repurchase move at the beginning of this year. The company purchased its shares at a $11.3 billion valuation during the last buyback. The current valuation stands at $11.3 billion, which represents a lower value than its $15 billion mark recorded in 2022.

Most businesses choose to launch an IPO to gain funds or establish greater market recognition. Presently, Ripple operates without the need for any of those requirements. Ripple maintains it will avoid seeking outside funding and keep its shares off any public stock exchange in the near future.

During the years of its SEC legal dispute, investors maintained the expectation that Ripple would list its shares for public trading following a settlement with the US Securities and Exchange Commission. Garlinghouse told the public in 2022 that Ripple would evaluate an Initial Public Offering when the lawsuit terminated. Ripple settled legal disputes with the SEC during late 2023, yet has confirmed that a public stock offering does not represent its top priority.

In addition to staying private, Ripple continues to grow its business operations. The business portfolio of Ripple includes foreign exchange alongside digital assets and derivatives and swaps, and fixed income products. Through this acquisition, Ripple established itself as the first crypto operation to operate and manage a worldwide multi-asset prime brokerage. Ripple selects this acquisition path to develop its market position, in addition to being self-funded.

Lastly, Ripple chose to enhance its financial position while building its growth instead of conducting an initial public offering. The company stays in a solid position, according to statements made by both Monica Long and Brad Garlinghouse. Therefore, an IPO is unnecessary at this time. Ripple intends to pursue its independent development as a private organization while other companies get ready to launch stock market initiatives.