Ripple Puts Public Listing on Hold
Fintech company Ripple has decided to delay its plans to become a public company, as it explores markets outside the United States. The San Francisco-based firm has recently been buying back shares worth hundreds of millions of dollars from its shareholders.
Buyback and IPO Plans
Ripple CEO Brad Garlinghouse confirmed the share buyback in an interview with CNBC. He stated that the company has repurchased $1 billion worth of shares so far. While an initial public offering (IPO) remains a possibility, Garlinghouse emphasized that it is not a top priority at the moment.
“And we’ll evaluate again [going public], as we have new regulators sitting at the United States SEC.”
– Brad Garlinghouse
Liquidity for Long-Term Investors
Garlinghouse highlighted the importance of providing liquidity to long-term investors who have supported Ripple since 2012. The share buybacks aim to address this need.
“You know, shareholder liquidity is important to me. We have investors that first invested in Ripple in 2012. So they’ve been in this deal for eleven-and-a-half years. And so we want to provide that liquidity, which is one of the reasons why we’ve done these tender offers.”
– Brad Garlinghouse
Challenges with U.S. Regulators
The decision to pause plans for a U.S. IPO is due to what Garlinghouse described as a “very hostile regulator.” He mentioned exploring other jurisdictions with clearer regulations but did not disclose whether a suitable jurisdiction for going public has been found.
Hot Take: Ripple Delays Public Listing Amidst Regulatory Uncertainty
Ripple’s decision to put its plans for an IPO on hold reflects the challenges it faces with U.S. regulators. The company’s share buybacks aim to provide liquidity to long-term investors. While an IPO remains a possibility, Ripple is exploring other jurisdictions with clearer regulatory frameworks. This move demonstrates the importance of regulatory certainty in the crypto industry and highlights the need for collaboration between companies and regulators to foster innovation and growth.
By
By
By
By
By