- Ripple will not pursue an IPO that quotes billions in cash and focuses on strategic acquisitions
- XRP remains central to the Ripple ecosystem, in support of cross-border payments and blockchain integration
Ripple brings growth over his public list ambitions. In conversation with CNBC, President Monica Long confirmed that the blockchain company has no immediate plans to become public, pointing to strong liquidity and a focus on acquisitions to stimulate expansion.
Current financial status
Supported by a strong cash position, the blockchain company established in San Francisco sees an urgent need to tap into the government markets. In her interviewLong mentioned,
“We have a lot of liquidity at the moment, so we have billions of dollars in cash on the balance …”
With billions in cash reserves, Ripple leans in an acquisition -driven strategy. Long emphasized that the company is actively investigating opportunities to expand through strategic investments, instead of pulling capital via an IPO. Long also spoke about how Ripple’s current focus is to grow their current company, emphasizing an internal growth strategy that stands out in a market that is often defined by rapid public entries.
At the same time, Long also spoke about the essential role of XRP within the wider blockchain ecosystem.
“XRP serves a few different roles … Within the blockchain, the XRP whides, it’s the native assets, so you need it for gas costs, you need it for the minimum of the spare account, and so there are more users and more use cases built on XRP wholesal, that Activa will always be needed.”
Ripple’s history with IPO speculations
However, this is not the first time that Ripple has refused all IPO speculations.
In 2022, CEO Brad Garlinghouse suggested that a public list could be considered after the company resolved its legal battle with the US SEC. However, at the end of that year, Garlinghouse clarified that an IPO remained off the table, referring to Ripple’s robust liquidity and healthy business activities – a position that continues to strengthen the company.
Expansion and strategic focus
According to the Exec, the focus on scaling up its worldwide footprint remains due to strategic acquisitions and partnerships. At the moment, XRP token remains an important force in the cross-border payment space, which gives Ripple a meaningful traction in markets such as Japan-a country where access to XRP has increasingly become streamlined.
Finally, Long also emphasized Ripple’s wider mission to serve as the connective tissue between traditional finances and blockchain.
“It is not realistic that the existing systems such as banks will connect directly to the blockchain, they do need some connective tissue, that is what we offer … Things such as getting currencies from the real world, Fiat-Maluta in digital assets currencies, they are on the disasters.
It seems that Ripple has a lot of confidence in his growth process, without needing the validation of the public markets.
Credit : ambcrypto.com
