There has been a lot of speculation lately about Ripple’s potential initial public offering (IPO). The fintech company has made several comments about going public and provided several hints of when it might occur.
In this article, we are going to examine the Ripple IPO date, potential Ripple stock price, and more. But first, let’s quickly explain what Ripple does and what’s its relation with the XRP cryptocurrency.
What is Ripple?
Ripple (“Ripple Labs”) is a fintech company that provides a global network for real-time payments. It uses blockchain technology to enable banks and other financial institutions to send and receive payments across borders quickly, securely, and at a low cost.
Ripple’s network is used by over 300 customers in more than 40 countries. Some of its partners include Santander, Bank of America, American Express, and MoneyGram.
Here is a quick overview of what Ripple does and how it works:
- Ripple provides a platform for financial institutions to send and receive payments across borders quickly, securely, and at a low cost.
- The platform uses blockchain technology to track and verify payments.
- Ripple’s cryptocurrency, XRP (XRP), is used to facilitate payments on the Ripple network. XRP can be used to convert currencies, send payments, and settle transactions.
Ripple is still a relatively new company, but it has the potential to revolutionize the way cross-border payments are made. Ripple payments are processed in seconds, compared to days or weeks for traditional cross-border payments. They are also much cheaper than traditional cross-border payments, which can incur high fees. Finally, the payments are transparent and traceable, which can help to reduce fraud and improve compliance.
It is important to note that Ripple is currently facing a lawsuit from the US Securities and Exchange Commission (SEC), which alleges that XRP is a security and that Ripple’s executives sold XRP illegally. The outcome of this lawsuit is uncertain, but it could have a significant impact on the future of XRP and Ripple.
What is XRP?
It would be impossible to describe Ripple without mentioning XRP. XRP is a cryptocurrency that is used to facilitate payments on the Ripple network. It can be used to convert currencies, send payments, and settle transactions.
XRP is one of the largest digital assets by market capitalization. It is also one of the most liquid cryptocurrencies, meaning that it is easy to buy and sell.
Here are some of the benefits of using XRP:
- Fast transactions: XRP transactions are processed in seconds.
- Low fees: XRP transactions have very low fees.
- Global reach: XRP can be used to send and receive payments anywhere in the world.
XRP is a popular choice for both businesses and individuals who need to make fast, low-cost international payments.
If Ripple emerges from the legal battle against the SEC victorious, the XRP price could see a massive boost in price, and potentially even surpass its ATH from 2018. For more information about its potential future price movements, check our XRP price prediction.
What’s the Ripple IPO date?
There’s no exact timeline for a Ripple IPO date at the moment. However, Ripple CEO Brad Garlinghouse has stated on multiple occasions that the company intends to go public in the future. In May 2022, Garlinhouse told CNBC that Ripple would “explore the possibility of an IPO” after the SEC lawsuit comes to an end. Here’s the full quote:
“But you know, we certainly are at a point in scale, where that (IPO) is a possibility. And we’ll look at that once we’re past this lawsuit with the SEC.”
Most experts agree that the lawsuit will end sometime in 2024, likely with a settlement between the two parties. However, the legal battle might carry on for much longer, and we could see the final verdict in 2025 or even later.
It’s important to note that Ripple scored an important victory against the SEC in July when the judge ruled that XRP sold to programmatic investors (retail investors on crypto exchanges) did not break security regulations. The price of the XRP token exploded by +90% in the hours after the verdict.
What will the Ripple stock price be?
It’s very difficult to predict what the price of Ripple stock will be after the IPO, but we can make some assumptions.
According to data from CB Insights, Ripple’s last post-money valuation from January 2022 valued the company at $15 billion, roughly the size of the French banking giant Societe Generale SA.
The exact price of Ripple shares will ultimately depend on the number of outstanding shares. If the company issues 100 million shares, which seems like a very plausible number, then the price of a single XRP share would be roughly $15 – that’s assuming the $15 billion valuation.
How to buy Ripple stock before IPO?
Unfortunately, there’s no way to buy Ripple stock before the IPO. However, you could consider investing in the XRP digital currency, which is the native digital asset of the Ripple network. If Ripple as the company continues to grow, and its blockchain network sees more activity, then the price of XRP is bound to increase as well. You can purchase XPR on pretty much all of the best crypto exchanges.
The bottom line
There is currently no exact date for the Ripple IPO or official estimate of Ripple’s stock price. However, given the CEO’s statements, the company will pursue the going public route if given the chance. At the moment, it seems that the decision will ultimately come down to how the SEC vs. Ripple lawsuit ends.
If you want to learn more about Ripple and XRP, we suggest you check our article on the top XRP holders to see who ranks where on the XRP rich list.