TL;DR
- Ripple will prioritize strategic acquisitions over pursuing an initial public offering (IPO) following its legal victory against the SEC.
- The company aims to recover funds from the $150 million spent on its legal battle and expand its blockchain infrastructure.
- Ripple plans to strengthen its position in the stablecoin market, with RLUSD projected to be among the top five stablecoins by the end of 2025.
Ripple, the company behind XRP, has made a strategic pivot following its legal victory against the U.S. Securities and Exchange Commission (SEC).
The resolution of the legal battle, which dragged on for years, has freed Ripple from the restrictions imposed by the SEC, now allowing the company to plan its future in the market and the blockchain industry with greater freedom.
In a recent interview, Ripple CEO Brad Garlinghouse confirmed that the company has decided to prioritize acquisitions over the possibility of an initial public offering (IPO). While the market had speculated about a potential public listing, Garlinghouse explained that the political and regulatory situation under Gary Gensler’s administration had made growth options difficult. Thus, the company has chosen to strengthen its position by acquiring companies that complement its technological infrastructure, particularly in the blockchain industry and among financial institutions.
Ripple Must Recover the Costs of Its Legal Battle
The CEO also revealed that, due to the high cost of the legal process, which totaled over $150 million in expenses and $125 million in fines, Ripple would seek ways to recover some of these funds. Although he did not mention specific details about the potential acquisitions, he made it clear that the company’s intention is to expand its blockchain infrastructure network, which will be key to its long-term growth.
Another crucial point for Ripple has been its foray into the stablecoin market. Its stablecoin RLUSD, launched at the end of 2023, has exceeded initial growth expectations. Garlinghouse predicts that RLUSD could become one of the top five stablecoins in the market by the end of 2025.
Are XRP ETFs Coming?
Furthermore, the resolution of the conflict with the SEC could accelerate the adoption of XRP-based products, such as a potential XRP ETF, which would increase institutional interest in the cryptocurrency. According to Garlinghouse, ETF applications are expected to be approved in the second half of this year, which could bring new opportunities for Ripple in the traditional financial market.
Ripple is aiming for expansion through strategic acquisitions while continuing to solidify its presence in the stablecoin market and preparing for new opportunities in the traditional financial market.
