Ripple postpones IPO plans despite being valued at $11.3 billion

Ripple, the blockchain technology company behind the cryptocurrency XRP, has officially confirmed that it will not proceed with its IPO ( public issuance) plan in 2025. This is a surprising move, marking an important strategic shift after years of speculation and market expectations.

Long-term strategic priorities instead of public listing

Although it has achieved legal clarity after a prolonged battle with the U.S. Securities and Exchange Commission (SEC), Ripple stated that the company currently has no need for an IPO. Instead, Ripple is focusing on alternative growth strategies such as acquiring businesses and expanding digital financial products, aiming to assert its position as a global financial organization connecting both the traditional world and blockchain.

According to Ripple's President, Monica Long, the company is holding billions of dollars in reserve funds and does not need capital from the public market to maintain operations or enhance brand reputation. She shared with CNBC that Ripple "has strong resources" and "does not rely on an IPO for growth."

This is contrary to the expectations of many analysts and long-time investors, who previously viewed the IPO as the logical next step following Ripple's legal victory and stable financial foundation.

Restructuring capital and re-evaluating the market

At the beginning of 2024, Ripple conducted a stock buyback worth 285 million dollars, valuing the company at approximately 11.3 billion dollars – down from a peak of 15 billion dollars in 2022. Although the valuation is somewhat "cooling off" compared to the peak period of the crypto investment frenzy, this move reflects the company's proactive step in restructuring its investor base and facilitating partial divestment for initial shareholders.

Notably, Ripple still maintains strong support from top venture capital funds such as Andreessen Horowitz, Founders Fund, and Google Ventures. This is a signal that investor confidence in the company's long-term potential has not diminished – despite the postponement of the IPO.

Acquiring Hidden Road and entering the stablecoin market

Instead of going public, Ripple is ramping up strategic acquisitions to expand its global footprint. Recently, the company completed the acquisition of Hidden Road – a leading digital asset brokerage that handles over $3 trillion in transactions per year – valued at up to $1.25 billion.

This transaction is an important step in Ripple's strategy to integrate more deeply into the global financial ecosystem. At the same time, the company is also preparing to launch RLUSD – a stablecoin backed by the US dollar – to directly compete with rivals such as USDC and USDT. The combination of traditional financial infrastructure and native cryptocurrency tools is helping Ripple get closer to its goal of becoming the leading cross-border payment bridge.

Signals for a New Trend in Blockchain Companies

Ripple's decision not to proceed with an IPO at this time also reflects a broader trend in the technology and cryptocurrency industry. Since 2022, the global IPO market has become subdued in the context of macroeconomic instability and unresolved legal concerns.

Ripple is not the only company reassessing the true benefits of going public. In an industry where flexibility and the ability to innovate are key to success, maintaining tight control and avoiding the constraints of the stock market can be a strategic advantage.

Despite delaying its IPO, Ripple still clearly demonstrates its long-term and sustainable development direction. With a strong financial position, a global partner network, and a flexible expansion strategy through acquisitions and stablecoins, Ripple is gradually reshaping its role – not just as a blockchain company, but as a cornerstone in the 21st-century digital financial infrastructure.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making any decisions. We are not responsible for your investment decisions.

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Taylor