TL;DR
- Ripple suspended its IPO plans for 2025, prioritizing acquisitions and new products like RLUSD, despite its solid $11.3 billion valuation.
- The $1.25 billion purchase of Hidden Road strengthens its focus on digital financial services.
- The company rules out relying on external capital or public markets, focusing instead on infrastructure and payment solutions without public exposure.
Ripple decided to suspend its planned IPO for 2025, despite holding a current valuation of $11.3 billion and having resolved its long-standing legal conflict with the United States Securities and Exchange Commission (SEC).
The company believes it doesn’t need external capital or increased public exposure to sustain its operations and growth pace, so it will prioritize other strategies to continue strengthening its presence in the financial sector.
Monica Long, Ripple’s president, confirmed that the firm maintains substantial reserves and a solid business. The company had previously considered an initial public offering, especially after obtaining a partial resolution in its dispute with the SEC. However, current market conditions and its financial position led them to rule out that possibility in the short term.
Strategic Acquisitions
Instead of pursuing a stock market listing, Ripple chose to expand its reach through select acquisitions. The purchase of Hidden Road, a digital asset broker that processes over $3 trillion in transactions per year, was one of its latest moves in that direction. The $1.25 billion deal will allow the company to strengthen its position in both traditional and digital financial services.
Ripple Bets on RLUSD
The company is also moving forward with the development of RLUSD, a dollar-backed stablecoin aiming to compete with USDC and Tether. This project seeks to expand its participation in cross-border payment markets and liquidity solutions, combining classic banking infrastructure with tools from the crypto industry.
It’s worth noting that the broader IPO landscape also influenced the firm’s decision. Since 2022, activity in that segment has declined due to macroeconomic and regulatory factors. Many tech companies prefer to avoid risk and the unfavorable conditions of stock markets. Ripple seems to align with that trend, choosing to focus on concrete projects that don’t rely on financial speculation.
Even without an IPO on the agenda, Ripple will continue to strengthen its business and grow its capital with backing from prominent investors such as Andreessen Horowitz and Google Ventures. Its current strategy aims to build an infrastructure capable of sustaining itself without the pressure of public markets
