Ripple’s Strategic Vision: IPO, Stablecoin, and Asset Tokenization
In a recent discussion with CNBC’s Arjun Kharpal, Monica Long, President of Ripple, shared insights into the company’s future trajectory. The conversation highlighted Ripple’s strategic initiatives including a potential US initial public offering (IPO), the introduction of its US-dollar stablecoin RLUSD, and an ambitious focus on real-world asset tokenization.
The Prospect of a Ripple IPO
Reflecting on Ripple’s early challenges in engaging banks with its blockchain-based cross-border settlement solutions in 2014, Long noted the significant transformation in the financial sector. Over the past decade, banks have come to recognize blockchain as the future of finance, leading to Ripple’s expansion into custody, stablecoins, and tokenization services.
Advertisement Banner
While CEO Brad Garlinghouse has previously indicated that an IPO could follow the conclusion of Ripple’s legal battle with the US Securities and Exchange Commission, Long clarified that there is no immediate urgency to go public. With substantial liquidity and billions of dollars in cash reserves, Ripple is instead focusing on inorganic growth through acquisitions. Recent favorable US policy signals are also encouraging Ripple to explore domestic opportunities that were previously constrained by the SEC lawsuit.
Since a July 2023 court ruling by Judge Analisa Torres, declaring that XRP is not a security, Ripple has intensified its hiring in the US and strengthened collaborations with American banks. Long emphasized the necessity for a connective layer between legacy banking systems and blockchain technology, which Ripple is well-positioned to provide.
The Launch of RLUSD
Ripple’s foray into the stablecoin market is marked by the introduction of Ripple USD (RLUSD), which currently boasts a market capitalization nearing $300 million. The decision to launch RLUSD stemmed from demand in trade corridors between Latin America and Asia, where counterparties prefer dealing in US dollars over volatile local currencies. RLUSD serves as a 24/7 liquidity solution for corporates, overcoming limitations such as bank cut-off times and non-business hours.
Although the stablecoin market has largely been propelled by crypto trading, Ripple’s strategy is firmly rooted in institutional applications. RLUSD is geared towards cross-border payments and collateral management, offering significant utility for institutional clients.
The strategic acquisition of prime broker Hidden Road for $1.25 billion, which facilitates approximately $3 trillion in annual volume, further enhances Ripple’s position. Hidden Road’s clientele demands on-chain dollars for traditional asset margins, a use case that could propel RLUSD’s circulation without directly competing with retail-focused stablecoin providers.
Asset Tokenization and Regulatory Developments
Long reiterated Ripple’s belief in blockchain’s potential to become a “modern financial rail,” with tokenized capital market instruments representing a key area of growth. Ripple is equipping banks like SG Forge with the necessary custody and issuance tools to create and manage digital representations of securities, while maintaining control over product design.
The company’s focus is on integrating legacy systems with blockchain technology, a theme reflected in upcoming XRP Ledger enhancements for multi-purpose tokens and native lending protocols. Despite Ripple’s primary focus on institutional markets, Long hinted at future retail opportunities, citing personal interest in fractional ownership models.
Long also noted the improving regulatory climate in the US, with positive developments such as the rollback of SAB 121 and a more balanced approach from the SEC. She highlighted bipartisan support for a stablecoin bill and the consideration of XRP in Washington’s proposed “crypto strategic reserve,” which validates the asset’s legitimacy.
Emphasizing Ripple’s commitment to long-term utility, Long concluded, “If we create solutions that address real-world problems, everything else will fall into place.” As of 2025, Ripple’s narrative centers on RLUSD’s institutional applications, large-scale tokenization projects, and the potential for US banks to hold XRP-Ledger assets.
