Ripple (CRYPTO: XRP), the San Francisco-based payments company behind the cryptocurrency XRP, is planning an IPO, according to its largest outside shareholder. SBI Holdings Inc (TYO: 8473).
What happened: Yoshitaka Kitao, CEO of Japanese financial services giant SBI Group, revealed Ripple’s future initial public offering (IPO) plans during an earnings call on Wednesday.
“Following the current lawsuit, Ripple will be going public. The current CEO wants to do it,” Kitao said, referring to Ripple CEO Brad Garlinghouse and CEO Chris Larsen, and Chris wants to do it.
Kitao also stated that SBI’s investment in the company will pay off after an IPO due to the fact that SBI is Ripple’s largest external shareholder.
The Japanese company has been a long-term strategic partner who has made a series of investments in Ripple over the years. In 2019, the SBI was part of a $200 million Series C funding round, along with Tetragon and Route 66 Ventures that saw Ripple value $10 billion.
why does it matter: In 2020, Ripple CEO Brad Garlinghouse expect That cryptocurrency IPOs will be part of the next step in the evolution of the industry.
“In the next 12 months, you will see IPOs in the crypto/blockchain space. We will not be the first and we will not be the last, but I expect us to be in the lead… It is a natural evolution for our company.”
The first crypto company to go public, Coinbase Global Inc (NASDAQ:COIN), has completed its first day of trading as a public company with a valuation of $85.7 billion.
See also: XRP Price Jumps Over 30% After Another SEC Move in Ripple’s Suit
Whether or not Ripple is next can largely depend on the outcome of its ongoing lawsuit with the Securities and Exchange Commission. So far, the original cryptocurrency token XRP has surged 455% since the details of the lawsuit were first announced in December 2020.
price movement: XRP was trading at $1.59 at the time of writing, up more than 13% over the past 24 hours.