Ripple valued at 40 billion, rejects IPO! President: Staying private is healthier

Ripple President Monica Long said in an exclusive Bloomberg interview on Tuesday that there are no plans for an IPO, stating “maintaining privatization.” Last November, the company raised $500 million in funding, valuing it at $40 billion. Long emphasized that financial health does not require going public. In December, Ripple obtained an OCC bank charter, with XRP trading at $2.15, making it the fourth largest by market cap.

The Private Logic Behind the $40 Billion Valuation

On Tuesday, during an interview with Bloomberg, Ripple President Long responded to rumors about the company’s plans to go public after reaching a $40 billion valuation in November of last year. Long stated that after the $500 million funding round led by Citadel Securities and Fortress Investment Group, the company is focused on growth, and this funding also contributed to the increase in Ripple’s valuation.

“Currently, we still plan to remain private,” Long explained further based on comments after the November funding. “Typically, an IPO is a strategy to gain liquidity from investors and the public markets. Our current financial situation is very healthy, and we can continue to fund and invest in the company’s development without going public.”

This logic is not uncommon among tech companies, but it is relatively rare in the crypto industry. Most crypto firms consider an IPO once their valuation reaches billions of dollars, such as Coinbase going public in 2021 and Circle planning an IPO in May 2025. Ripple’s refusal reflects caution regarding regulatory pressures from public markets and the transparency requirements of quarterly financial reports.

The biggest advantage of privatization is flexibility. Public companies must release quarterly financial reports and face scrutiny from shareholders and analysts, with poor performance potentially causing stock volatility. Private companies can focus on long-term strategies without the pressure of short-term profits. For Ripple, building cross-border payment infrastructure takes years, and an early IPO could be hampered by quarterly performance pressures.

Is a $40 billion valuation reasonable? The largest compliant US crypto exchange has a market cap of about $70 billion, and Circle’s valuation is around $5 billion. Ripple falls between the two, with both its B2B business via RippleNet and the financial attributes of XRP tokens. The $40 billion valuation reflects investor recognition of its dual value.

Four Reasons Why Ripple Rejects IPO

Financial Self-Sufficiency: $500 million funding provides ample capital, no need for public market financing

Avoid Regulatory Pressure: Going public requires compliance with strict SEC regulations; privatization maintains flexibility

Long-term Strategic Freedom: No quarterly report pressures, focus on building cross-border payment infrastructure

XRP Complexity: XRP’s regulatory status remains controversial; going public could trigger new regulatory challenges

OCC Bank Charter Is the True Milestone

In December, the US Office of the Comptroller of the Currency (OCC) conditionally approved the national trust bank charters for Circle and Ripple. BitGo, Fidelity Digital Assets, and Paxos also received conditional approval to convert their existing state-chartered trust companies into federally chartered national trust banks. This license is far more significant than an IPO.

A national trust bank charter allows Ripple to provide financial services at the federal level, not limited to a single state. This cross-state operation capability is crucial for cross-border payments, as RippleNet needs to connect hundreds of financial institutions worldwide. The federal license also enhances Ripple’s compliance profile in the eyes of traditional financial institutions, making large banks more willing to cooperate with federally regulated entities.

Ripple’s application states that its articles of incorporation “will not make it the issuer of its USD-pegged stablecoin Ripple USD (RLUSD).” This design separates stablecoin issuance from trust banking activities, reducing regulatory complexity. Other companies will offer various digital asset custody services. Among these applicants, BitGo has announced plans to go public, and Circle completed an IPO in May.

Unlike Circle’s choice to go public, Ripple’s decision to continue privatization after obtaining a bank license indicates its strategic focus on business compliance rather than capital market fundraising. The business value unlocked by the bank license may far surpass the branding benefits of an IPO.

Strategic Freedom After SEC Lawsuit Ends

Long made these remarks as he looked toward 2026, just a few months after the US Securities and Exchange Commission announced it would gradually cease enforcement actions against Ripple, sparking speculation about an IPO. Long repeatedly denied reports that Ripple is seeking to go public. This firm denial indicates that IPO is not a priority in Ripple’s strategic planning.

The end of the SEC lawsuit clears the biggest regulatory hurdle for Ripple. In 2020, the SEC sued Ripple for illegal securities sales; the lawsuit lasted several years and severely impacted Ripple’s US expansion. In 2023, a judge ruled that XRP’s programmatic sales do not constitute securities offerings, and in 2025, the SEC withdrew its appeal, marking a victory for Ripple.

This victory has significant strategic implications. Once XRP is clearly classified as a non-security, Ripple’s US operations face minimal regulatory obstacles. An IPO might have been seen as a way to legitimize and gain mainstream acceptance, but with regulatory issues resolved, the need for an IPO diminishes greatly. Ripple can continue operating privately, avoiding the restrictions of public markets.

As of writing, XRP’s price is $2.15, down about 6% in the past 24 hours. By market cap, it is the fourth-largest cryptocurrency. The relationship between XRP’s price and Ripple’s IPO status is subtle; if Ripple goes public, it could temporarily boost XRP’s price, but long-term, it might expose weaknesses due to increased transparency requirements. Maintaining privatization preserves mystery and imagination.

Overall, Ripple’s rejection of an IPO is based on considerations of financial independence, strategic flexibility, and regulatory risk. The $40 billion valuation combined with the OCC bank license has positioned Ripple with a market standing comparable to a public company, without the additional burdens of the public markets.