CEO of Ripple points to IPO

24 Jan 2020

Ripple XRPThe CEO of Ripple, Brad Garlinghouse forecasts initial public offerings (IPOs) will gain more prominence in the cryptocurrency and blockchain sector this year.

Whilst speaking at the World Economic Forum in Davos this week, the CEO indicated that Ripple may itself seek a public flotation.

He commented: “In the next 12 months, you’ll see IPOs in the crypto/blockchain space. We’re not going to be the first and we’re not going to be the last, but I expect us to be on the leading side… it’s a natural evolution for our company.”

Last month, Ripple raised $200 million in Series C funding, typically the final step before a company goes public, reports The Block. The Series C round valued the firm at $10 billion.

To date, Ripple has generated $293.6 million in funding.

Up to now the cryptocurrency industry has focused on initial coin offerings (ICOs), evolving as an alternative issuance model for young, innovative companies to sidestep the burdensome legal and regulatory requirements of a traditional IPO, reports Coin Telegraph.

However, due to many unsuccessful offerings, a number of firms are now looking to public listings on traditional stock exchanges in order to boost confidence among mainstream investors.

Garlinghouse believes this trend will grow in the near future, even though some of the main players in the industry have struggled to adhere to the rigorous requirements of an IPO.

As a substitute for adopting a traditional flotation model, major cryptocurrency companies have opted for compliant token sales, with approval from the U.S. Securities and Exchange Commission.

Back in November last year, California-based Silvergate Bank – a commercial bank focused on digital currency businesses – went public with an initial public offering on the New York Stock Exchange.

As per a filing with the SEC last October, Silvergate saw its digital currency clients increase from 655 as at June 30 to 756 on September 30 2019.
 

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