How a Ripple IPO Could Reshape the XRP Ecosystem—Expert Insight
- All Things XRP has stated that if Ripple proceeds with an Initial Public Offering, the ramifications for XRP could be profound and re-energizing.
- An IPO will introduce liquidity to early investors; it will also introduce regulatory scrutiny and the pressure of maintaining public market expectations.
The resolution of the Securities and Exchange Commission (SEC) lawsuit against Ripple ended long-standing judicial doubts, and it ignited speculation about an IPO and what that would mean to XRP. A recent All Things XRP tweet summarized the excitement in blunt terms: “IF RIPPLE IPOs, HERE’S WHAT COULD HAPPEN TO XRP (And It’s Not What You Think)… XRP doesn’t just go up… it graduates.”
If Ripple were to officially list on a big exchange, it would be a goal for the company, but also for the entire crypto market. “Wall Street loves clarity. An IPO means Ripple opens the books, full transparency, full legitimacy,” All Things XRP noted, and that sentiment resonates with analysts.
Going public would subject Ripple to quarterly earnings reports and tight corporate governance. For institutions and traditional investors, this kind of transparency would flip the script on XRP’s image, from a speculative token to a real, regulated financial product.
Crypto traders survive on momentum, and an IPO by Ripple could be the trigger. The IPO could act as a catalyst, attracting speculative buying and also decreasing the risk appetite among institutional investors. Analysts believe that with an IPO, XRP can touch $8, given increased exposure and investor confidence. Others expect XRP to touch $10 in 2030 based on regulatory clarity and the take-up of Ripple’s RLUSD stablecoin. All Things XRP summed the sentiment best: “Price? Buckle up.”
IPO capital infusion would allow Ripple to make the XRP Ledger stronger, to innovate new blockchain applications, and to forge partnerships with institutions. For instance, recently, Ripple pulled off a power move by acquiring Hidden Road, one of the leading prime brokerage companies, for $1.25 billion.
No IPO Plans (For Now)
As highlighted in our previous blog post, Ripple CEO Brad Garlinghouse addressed wild speculation regarding the company’s IPO plans. Setting the record straight, he confirmed that Ripple has no intention of going public soon. According to Garlinghouse, the firm is currently in the mode of building and not borrowing, focusing its efforts on acquisitions, and looking for M&A opportunities.
Meanwhile, the XRP ecosystem as a whole has been buzzing with activity. Just last week, Teucrium made the headlines with the launch of its 2x XRP Exchange Traded Fund (ETF) that had over $5 million in trading volume on the debut day. Asset managers, including Bitwise, 21Shares, Grayscale, and Franklin Templeton, have all filed for the XRP ETF, bringing the total to 18 proposals awaiting approval by the SEC.
In the markets, XRP recently broke through a key resistance level to trade above $2.02, with a 3% gain on the weekly chart. However, at the time of writing, the price had suffered a slight reversal of 1.10% in the last 24 hours. Its trading volume also dropped by 20.81%, settling at approximately $2.36 billion.
