Ripple will not pursue an IPO, pointing to billions of dollars in cash and its focus on strategic acquisitions.
XRP remains the core of the Ripple ecosystem, supporting cross-border payments and integration of blockchain technology.
Ripple prioritizes growth over its IPO ambitions. In a conversation with CNBC, President Monica Long confirmed that the blockchain company is not currently planning an IPO, citing its strong liquidity and focus on acquisitions to drive expansion.
Current financial situation
Thanks to its strong cash position, the San Francisco-based blockchain company does not see an urgent need to enter public markets. In her interview, Long stated:
"Currently, we have ample liquidity, so we have billions of dollars in cash on the balance sheet..."
With cash reserves in the billions, Ripple tends to have an acquisition-based strategy. Long confirmed that the company is actively exploring expansion opportunities through strategic investments, rather than raising capital through an initial public offering. Long also discussed Ripple's current focus on growing its existing business, highlighting an internal growth strategy that stands out in a market often known for rapid public listings.
Meanwhile, Long also discussed the essential role of XRP in the broader blockchain ecosystem.
"XRP plays a different role... within blockchain, the XRP ledger is the native asset, so we need it for transaction fees, we need it for the minimum reserve requirement, and as the number of users and use cases built on the XRP ledger increases, there will always be a need for this asset."
Ripple's history with IPO speculation
This is not the first time Ripple has categorically denied all IPO speculation.
In 2022, CEO Brad Garlinghouse hinted at the possibility of considering an IPO after the company concludes its legal battle with the U.S. Securities and Exchange Commission. However, late that year, Garlinghouse clarified that an IPO is still off the table, citing Ripple's strong liquidity and sound business operations - a stance the company continues to reinforce.
Expansion and strategic focus
According to the executive, the focus remains on expanding its global presence through acquisitions and strategic partnerships. Currently, the XRP token is still a key player in the cross-border payments space, helping Ripple gain significant momentum in markets like Japan - a country where access to XRP has become more convenient.
Finally, Long also emphasized Ripple's broader mission of acting as a bridge between traditional finance and blockchain technology.
It is not realistic for current systems, such as banks, to connect directly to blockchains; they need a bridging fabric, and that's what we provide... Things like the transition from traditional currencies to digital currencies are launch paths, and vice versa, which are also launch paths, and secure custody... providing stablecoins and services for institutions to enable them to tokenize assets.
Ripple seems to have great confidence in its growth path, without the need for validation from public markets.