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Ripple Labs is nearing the milestone of a potential initial public offering (IPO), a development that has been under consideration for a long time. An IPO could be a revolutionary moment reminiscent of Amazon.com Inc.’s initial public offering. (IPO) in 1997. Jake Claver, a Qualified Family Office Professional (QFOP), puts this idea to music in X, suggesting that Ripple’s strategy can show the way that led Amazon to become a global technology behemoth.
According to Claver, the company has strengthened its position within the blockchain ecosystem by using robust cross-border payment solutions, currently supporting more than 300 financial institutions worldwide. The company’s use of XRP, enables transactions that are significantly faster and less expensive than those processed through the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network. Claver emphasizes, “This positions Ripple as a faster, more transparent SWIFT 2.0.”
Despite these successes, Ripple has navigated major challenges, most notably its legal battle with the US Securities and Exchange Commission (SEC). However, recent court decisions have favored Ripple, potentially paving the way for bigger opportunities, including a public offering. Claver notes, “Recent court decisions in Ripple’s favor could open the door to great opportunities, such as going public.”
Why Ripple Is Like Amazon In 1997
Drawing parallels with Amazon’s evolution, Claver noted, “Just as Amazon was known as an online bookstore before its IPO, Ripple is known for its blockchain solutions. But there could be a lot more.” He also explained, “When Amazon went public, it raised $54 million, which opened up new markets.” Ripple also stands to unlock potentially huge growth opportunities through a public listing.
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Ripple’s strategic acquisitions, including that of Metaco—now rebranded as Ripple Custody—reflect its intent to expand its market presence. Claver notes, “With acquisitions like Metaco, now Ripple Custody, they’re already showing interest in expanding their reach. This could be just the beginning.”
The potential implications for Ripple of choosing an Initial Public Offering (IPO) or direct listing are multifaceted. Claver points out that the IPO will provide Ripple with new capital, allowing it to quickly scale and enter new markets such as tokenized securities, real-world assets (RWAs), and decentralized currencies (DeFi). He says, “The IPO will provide Ripple with new capital, enabling them to scale quickly and enter new markets such as tokenized securities, RWAs, or DeFi.”
In addition, the cash flow from an IPO can facilitate additional acquisitions, allowing the company to expand its offering and strengthen its portfolio. Claver makes a direct comparison to Amazon’s acquisition, noting, “Ripple can use IPO funds to acquire other companies and expand its offerings. Similar to Amazon’s acquisition of Whole Foods and Twitch, Ripple could enter new markets and strengthen its portfolio.”
The improved financial resources will also enable Ripple to accelerate its research and development efforts. Claver explains, “The additional resources would allow Ripple to accelerate R&D, develop the XRP Ledger, and test new applications such as smart contracts, real-world tokenized assets, and central bank currencies (CBDCs).”
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Claver distinguishes between two main routes to the public: the IPO and the direct listing. He explained, “An IPO involves the issuance of new shares to raise capital, usually underwritten by investment banks, but comes with costs such as underwriting fees and regulatory requirements. In contrast, direct listing does not involve issuing new shares; instead, existing shareholders sell their shares in the market. This method is usually less expensive and faster than an IPO. “
Given Ripple’s strong financial position, with more than $1.3 billion in reserves, Claver suggests that a direct listing could be a viable option. “Ripple can choose a direct listing because it already has a strong balance sheet,” he said. “A direct listing provides transparency and avoids the closing periods that limit insider trading in a traditional IPO.”
Beyond the financial mechanics, Claver insists that going public serves as Ripple’s legitimate strength. He draws parallels with Amazon’s IPO, saying, “Amazon’s IPO is e-commerce legitimization. For Ripple, a public listing will confirm its role in global finance, showing banks and regulators that it is here to stay. “
Recent favorable legal rulings in Ripple’s case against the SEC have greatly strengthened its position, making the prospect of a public listing even more possible. Claver concludes, “Ripple is in crisis, like Amazon before its 1997 IPO. If Ripple follows the same path, we could witness the rise of a new tech giant. Whether through an IPO or a direct listing, this move could unlock massive growth for Ripple and the blockchain industry. “
At press time, XRP traded at $0.5478.
Featured image from Shutterstock, chart from TradingView.com