Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. Financial and market information provided on U.Today is for informational purposes only. U.Today is not responsible for any financial losses incurred while trading cryptocurrencies. Please contact a financial professional and conduct your own research before making any investment decisions. Although we believe that all content is accurate as of the date of publication, certain offers mentioned may not be currently available.
Ripple CEO Brad Garlinghouse recently appeared on the Thinking Crypto podcast and shared his thoughts on initial public offerings (IPOs). Garlinghouse claimed that an IPO is not a priority for Ripple.
However, Web3 expert Jake Claver analyzed the impact a listing would have on Ripple in a post on X. Claver believes the ripple effect on the broader crypto sector will position Ripple as an ecosystem giant.
Will IPO turn Ripple into “SWIFT 2.0”?
Claver pointed out that Ripple already has significant power in cross-border payments. By using XRP as a faster and cheaper alternative to traditional payment channels like SWIFT, the IPO could upgrade it to 'SWIFT 2.0'.
related
This works seamlessly as Ripple serves over 300 financial institutions around the world. Claver believes Ripple could expand beyond its blockchain solutions if it goes through with an IPO. He compares the impact on the cryptocurrency space to Amazon's success after its 1997 IPO.
Web3 experts say Ripple has ambitions to expand, as evidenced by its recent acquisition of Metaco. Therefore, the IPO could accelerate Ripple's growth into other areas of the crypto world. He listed these as tokenized securities, decentralized finance (DeFi), and real-world assets (RWA).
Claver argues that such a move will legitimize the crypto industry in the same way that Amazon enabled e-commerce. He believes the IPO will demonstrate to banks, institutional investors, and even regulators that blockchain technology is here to stay as a disruptive force in global finance.
Issues with Ripple listing
Additionally, the listing could mark a turning point in the protracted legal battle between Ripple and the US Securities and Exchange Commission (SEC). Claver argues that recent favorable court rulings may make it easier for Ripple to secure an IPO listing from regulators.
related
Another notable benefit of Ripple's IPO is in the area of research and development. The funds raised will allow Ripple to invest in improving the XRP ledger and exploring new applications for the blockchain. This could in turn affect the listing of other blockchain companies.
Despite Claver's claims, some have suggested that going public would make Ripple accountable to shareholders. The concern expressed here is that Ripple will not be able to control who buys its shares, which could slow down the development and growth of blockchain.
