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Ex Ripple Engineer Says Ripple May Avoid IPO to Stay Private
Matt Rosendin, a former Ripple software engineer and the CEO of tokenization provider CapSign, has provided a crucial update on the Ripple IPO charge.Speaking at a podcast with host Ray Fuentes on Tuesday, Rosendin claimed that Ripples inclination towards an initial public offering (IPO) is thin compared to other major fintech firms. He stressed that going public is not the cross-border payment titans utmost priority at the moment.For the uninitiated, an IPO is a process by which private companies transition to publicly traded firms by offering shares of their stock to the general public for the first time. Notably, most entities pursue this process to raise more capital for business expansion and unlock a broader liquidity stream from individual and institutional investors.IPO Holds No Incentives for RippleFor context, Rosendin made the comment when asked if Ripple had any chance at going public before firms like Circle, Kraken, or Consensys. Notably, key industry leaders like Bitwise predicted that some of these firms would file for an IPO this year, with 2025 as the year of IPOs.In agreement with this sentiment, Rosendin noted that Circle will most likely go public first amid intensified efforts by the stablecoin issuer. Notably, the USDC issuer filed an IPO request with the US Securities and Exchange Commission last month after a confidential application in January 2024.However, the former Ripple engineer highlighted that Ripple may not be considering an IPO, as it plans to stay private. He boldly mentioned that becoming a public company has no added incentive for the cross-border payment firm.Notably, the disclosure may not surprise many XRP enthusiasts, as Ripple leaders have maintained a lackadaisical attitude towards an IPO in the past. For perspective, CEO Brad Garlinghouse ruled out an IPO in the United States last September amid an aggressive regulatory environment.However, he left the window open a month later if regulations eased but insisted that it is not a top priority for Ripple. Garlinghouse maintained that the companys unique financial strength means it is not in a position to source capital through IPO.Interestingly, there have been conversations that going public will finally push XRPs price to unprecedented levels. Specifically, US top attorney John Deaton speculated that the asset could claim $8.72.Why an IPO May Not Be Lucrative for RippleAs promising as going public may sound, it has its setbacks, too. For instance, aside from the high cost of filing for an IPO, founders may lose decision-making autonomy, a crucial feature the Ripple team may not be willing to compromise on.Moreover, while Ripple has maintained transparency, an IPO would open the firm to heightened public scrutiny. Investors would require information like its quarterly and annual reports, and the pressure of meeting specific financial targets would kick in.As a result, with Garlinghouse disclosing that Ripple is in a place of financial prosperity, it might not be ready for the hassles that come with going public.
