Ripple Shifts Focus from IPO to Acquisitions, Targeting M&A Opportunities

Ripple Labs, the blockchain-based payments company behind XRP, is making a strategic pivot, shifting its focus from an initial public offering (IPO) to acquisitions.

Ripple, the blockchain-based payments company behind XRP, is making a strategic pivot, shifting its focus from an initial public offering to acquisitions as it seeks to strengthen its market position following the conclusion of its legal battle with the U.S. Securities and Exchange Commission (SEC).

The company is now turning its attention to mergers and acquisitions (M&A) as a key avenue for growth and expansion, CEO Brad Garlinghouse confirmed in an interview with Bloomberg on Thursday.

This shift follows years of legal uncertainty, which began in 2020 when the SEC sued Ripple over alleged securities violations related to XRP. However, with the SEC recently dropping its appeal of a lower court ruling that largely favored Ripple, the company now has more freedom to shape its future.

“We are now in the driver’s seat to determine how we want to proceed,” Garlinghouse stated, highlighting that the resolution of the case allows Ripple to move forward with its expansion plans without any regulatory roadblocks.

At the same time, Ripple’s legal dispute with the SEC came at a steep cost. The company has spent over $150 million in legal fees and has already paid $125 million in fines, which are currently held in an escrow account.

When asked about the possibility of Ripple going public, the businessman noted that it remains an option but is not a priority at this time.

“It’s certainly something that is possible. The United States SEC under Gensler was so hostile to this industry. We had no choice but to litigate, and we did, and we won,” he said, reflecting on the company’s journey.

Instead, Ripple is focused on acquiring firms that align with its mission of expanding blockchain infrastructure for financial institutions.

“I won’t name names. At its core, Ripple is an infrastructure blockchain company. We sell our technology to businesses, primarily financial institutions. We are interested in other infrastructure blockchain companies,” he disclosed, hinting at the company’s M&A strategy.

Furthermore, Ripple is also venturing deeper into the stablecoin market with its new RLUSD stablecoin, which launched in late 2023 and has already surpassed initial growth expectations.

“We launched our stablecoin last year, and it’s already in the top 10, and I think it will be a top-five stablecoin by the end of next year,” Garlinghouse predicted, highlighting the rapid adoption of the stablecoin.

Finally, Garlinghouse suggested that improved regulatory clarity could spur the creation of XRP-based products, such as an exchange-traded fund (ETF).

“There are 11 different filings for crypto ETFs, and I expect we’ll see them go live in the second half of this year,” he said, alluding to the increasing interest from institutional investors in cryptocurrency products.