Crypto: Ripple gives up going public despite its victory against the SEC

As the crypto industry regains market confidence thanks to clearer regulation and growing interest from institutional investors, Ripple is opting for an unexpected direction. Despite a legal victory against the SEC and a year of exceptional growth, the Californian company renounces any IPO. A choice which contrasts with the ambitions of other players in the sector and calls into question the long-term strategy of the company.

A clear decision despite a favorable economic situation

While Ripple has just launched a crypto brokerage service dedicated to institutional investors, the president of the firm, Monica Long, put an end to persistent speculation by affirming in an interview reported by Bloomberg: “we have no plans or timetable for an IPO”.

This declaration comes in a favorable context, while the company is posting a record year and has just emerged victorious from its long legal battle against the SEC. This strategic shift contradicts past statements by CEO Brad Garlinghouse, who saw the IPO in 2020 as a “natural evolution” for Ripple.

In lieu of a public listing, Ripple highlights its strong financial position and its ability to finance itself independently. Here are the important elements:

• A fundraising of 500 million dollars was finalized, with the participation of leading institutional investors: Citadel Securities, Pantera Capital, Galaxy Digital, Brevan Howard and Marshall Wace;

• This raising is part of a billion-dollar public buyout offer, valuing Ripple at around $40 billion;

• The company has repurchased more than 25% of its outstanding shares in recent years, strengthening its internal controls;

• According to the estimate from CB Insights, Ripple would have generated $1.3 billion in revenue in 2024;

• Monica Long justifies this strategy by the financial autonomy of the company: “we are very well capitalized and can finance all of our organic growth, acquisitions and strategic partnerships”;

• Growing adoption of the RLUSD stablecoin along with improved regulatory clarity internationally has allowed Ripple to double its customer base in 2024, according to the company.

These elements confirm that Ripple does not feel any financial pressure to raise capital on the public markets, and that it favors an independent approach in a crypto ecosystem in full restructuring.

Ripple chooses strategic control and discretion

Behind this decision also lies a desire to control information and avoid the regulatory constraints imposed by a public listing. By choosing to remain private, the Ripple company retains great latitude in its governance and in the management of its financial data.

Monica Long also refused to share the exact amounts of turnover for 2024, a sign of a strategy which favors discretion over exposure. Unlike listed companies, Ripple can continue to trade, invest and restructure without having to be accountable to shareholders or financial market regulators.

Furthermore, although Ripple won an important legal victory against the SEC last March, this ordeal has left its mark. The company has suffered more than four years of uncertainty, which could explain a certain reluctance to expose itself again to American surveillance, even in a more favorable context.

Caution therefore seems to prevail, even as giants like Circle or Gemini advance openly towards the Stock Exchange. This refusal is perhaps not definitive, but it marks a clear desire not to rush things, at a time when the market is returning to peaks.