- Ripple shifts focus to acquisitions post-SEC lawsuit, aiming to consolidate blockchain infrastructure companies and expand influence in custody solutions and global payment systems
- Brad Garlinghouse highlights tokenized asset custody and payment efficiency as key growth areas, with stablecoins gaining traction amid improving clarity in Washington regulations
- Ripple’s proactive approach to acquisitions is expected to unlock the U.S. market, enabling institutions and financial ecosystems to embrace blockchain technology more effectively
Following the news that the United States Securities and Exchange Commission decided to drop the appeal against Ripple Labs, the world is now wondering what would be the next steps for the blockchain giant.Â
For the longest time, many people in the industry speculated that once it got freed from the reins of the SEC, Ripple could go public. In that scenario, Ripple’s public listing could solidify its position in the financial and cryptocurrency sectors — attract institutional investors, and expand its global reach.
However, Ripple Labs CEO Brad Garlinghouse recently downplayed the possibility of an initial public offering. Instead, the head of the firm is keen on moving it into a different strategy.
In a recent interview Garlinghouse had with Bloomberg, the Ripple chief soft-pedaled the possibility of an IPO, but made sure to leave the doors open for a future possibility.Â
“I think that’s available and I think the company’s at a stage where we could consider that,” Garlinghouse said. “That being said, it isn’t a huge priority. You know, I think most companies going public see raising capital as something that is high on their radar. You know, we have been in a very fortunate position to be able to grow the business organically.”
Instead, the top executives at Ripple Labs may be looking for another alternative to expand the company’s influence and efficiency across the globe.
Ripple’s Focus Shifts to Acquisitions
With the SEC lawsuit behind them, Ripple Labs is now focusing on acquisitions to strengthen its position in the blockchain space. CEO Brad Garlinghouse emphasized the company’s proactive approach, stating, “This is an industry that finally is going to be able to thrive in the United States, the largest economy in the world.”
Garlinghouse suggested that acquisitions might take precedence over an IPO in Ripple’s immediate plans. “Ripple, at its core, is a blockchain infrastructure company,” he explained, “and we’ll look at other things that are blockchain infrastructure companies.”
This approach aligns with his view that the industry is entering a period of consolidation, with increased opportunities for growth driven by changes in the regulatory landscape.
A move into new acquisitions like the recent Metaco purchase could solidify Ripple’s plan to become the world’s premier blockchain payment, tokenization, and crypto custody provider.
Confirming the Move To Offer Custody Services
In the same interview, the CEO also highlighted two primary areas where Ripple sees opportunities to expand: custody and payments. Financial institutions are increasingly showing interest in custodial solutions, especially for tokenized real-world assets. According to Garlinghouse, “Banks want to be able to custody safely, particularly when real-world assets are being tokenized.”
In payments, Ripple aims to address inefficiencies in the dated global payments infrastructure. “Wires are slow,” Garlinghouse noted, sharing a personal example of a five-day delay for a euro wire transfer. He also pointed to the growing role of stablecoins, saying, “There is starting to be more clarity in Washington, and you’re seeing people start to use stablecoins in really interesting ways.”
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