The crypto ecosystem is not ‘just’ about crypto anymore. The leading companies in the digital asset industry are now planning to enter the traditional financial world. Coinbase is a recent example of the IPO ambitions of prominent crypto players. Ripple, a leading enterprise blockchain and crypto solutions provider, has now joined the list of the companies who are aiming for a public listing or at least planning to do so.
The biggest issue in Ripple’s IPO journey is the lawsuit from the US Securities and Exchange Commission (SEC). Speaking to CNBC at the World Economic Forum, Brad Garlinghouse, the Chief Executive Officer of Ripple, said that the company will ‘look’ at IPO possibilities after the end of the lawsuit. Additionally, Garlinghouse is expecting an outcome of the lawsuit by the end of this year.
The growing adoption of XRP Ledger (XRPL) and RippleNet among institutions to facilitate global payments has contributed a lot to Ripple’s growth in the past few years. “Several state banks have announced interest in Ripple’s services,” Ilman Shazhaev, the CEO & Founder of Farcana, told Finance Magnates.
Ripple’s Q1 2022 XRP Markets report published in May shows that RippleNet started this year with record numbers. Last year, Ripple launched RippleNet’s ODL deployment in the Middle East. Several companies in the region, including LuLu Exchange and Bank Alfalah, started boosting cross-border payments through RippleNet.
But, is it only the performance that guarantees a successful IPO launch? Perhaps not. The stock of digital exchange Coinbase (COIN) made a debut in April last year with an opening price of over $340. COIN is now trading at $70. Clearly, this is not a very ‘promising’ start.
But, analysts believe that Ripple’s scenario is different as strong fundamentals, growing adoption and optimism, in case of a positive outcome for the company in the lawsuit, will make a strong case for a successful IPO launch.
Interest in XRP
XRP has been around for several years in the crypto market. With a market cap of more than $18 billion, XRP is the 7th largest cryptocurrency in the world. Despite a price dip of almost 50% in the last 3 months, XRP whales have kept accumulating the digital asset in large amounts.
Shazhaev believes that investors will be eager to grab…
