- Ripple’s prospective IPO could lead to the segregation of its cross-border payment operations into one or more subsidiaries.
- The shift might foster a clearer distinction between Ripple as a brand and its XRP cryptocurrency.
A Glimpse into Ripple’s Future Modus Operandi
As the buzz intensifies around Ripple‘s potential Initial Public Offering (IPO), the crypto sphere has been rife with speculation, particularly from influential figures in the XRP community. One such speculation, presented by the noted XRP influencer WrathofKahneman (WoK), dives deep into how Ripple might realign its operations post-IPO, especially concerning its famed cryptocurrency, XRP.
Hypothesis: If/When #Ripple IPOs, they eventually move xborder payments to a subsidiary(ies), making paymnt licensing cleaner, detaching the brand from #XRP somewhat, as the main co markets for crypto infra. It'd be a change from the old claims of "Ripple is a payments co". 1/
— WrathofKahneman 🪝 (@WKahneman) October 13, 2023
According to WoK, should Ripple proceed with its IPO, it’s conceivable that the firm might channel its cross-border payment operations to one or more distinct subsidiary entities. Such a strategic pivot, as WoK postulates, could immensely simplify the intricacies of payment licensing. The overarching rationale behind this move is Ripple’s envisioned capability to seamlessly penetrate new markets, fostering collaborations with partner entities and thereby streamlining regulatory greenlights.
Decoupling Ripple’s Brand from XRP
An intriguing facet of WoK’s theory is the anticipated ripple effect (pun intended) on XRP. By transitioning cross-border payments into standalone subsidiaries following the IPO, Ripple might carve out a more distinct identity for XRP, somewhat disentangling it from the primary Ripple brand.
This speculated structural reorientation would not merely be a cosmetic brand alteration. It could potentially herald XRP‘s metamorphosis into a fully autonomous entity, concentrating ardently on honing its payment functionalities.
Furthermore, WoK has also probed the possibility of Ripple situating its subsidiary beyond American shores. A move of this magnitude could be incentivized by appealing tax advantages associated with global registration. In tandem with this, the newly formed Ripple offshoots might wield the autonomy to annex smaller remittance outfits without the express consensus of Ripple‘s primary shareholder base.
A Community Engrossed in Speculation
Predictably, WoK’s conjectures have resonated profoundly within the XRP aficionado circles, triggering animated discussions about the prospective ramifications for both Ripple and XRP. Yassin Mobarak, the mastermind behind Dizercapital, resonated with WoK’s stance. Conversely, another enthusiast mooted the idea of rebranding XRP entirely to extricate it from Ripple’s shadow – a proposition met with WoK’s measured skepticism, dubbing it as potentially “structurally complex.”
Moreover, there’s ongoing speculation on whether RippleX will remain ensconced within the company’s core operational helm or get incorporated into the envisaged payment subsidiary framework.
In all fairness, these deliberations, as insightful as they may be, remain rooted in speculation and may not truly encapsulate the eventual trajectory Ripple and XRP might undertake.