Ripple Labs Aiming for IPO After SEC Lawsuit: SBI Group CEO

Jafrin  |  Apr 29, 2021

At the financial results briefing of SBI Holdings Co. Ltd. (SBI), CEO Yoshitaka Kitao revealed that Ripple Labs will aim for an initial public offering (IPO) after the U.S. SEC lawsuit ends. Ripple Labs is the parent company of XRP token, sued last year by the regulatory agency for selling its digital asset as unregistered securities.

Ripple Aiming for IPO After SEC Lawsuit: Yoshitaka Kitao

During an earnings presentation call, held on the 28th, Yoshitaka Kitao, the CEO of Japan’s leading financial company SBI Group, said that Ripple Labs will go public after the U.S. SEC lawsuit, adding that co-founder Chris Larsen wants to take forward on the idea:

“After the current lawsuit, Ripple will go public, Chris wants to do that.”

Not only Ripple Labs, but R3 is also considering going public, according to Kitao. R3 is a company that develops the DLT platform for Corda.

“SBI holds more than 10% of Ripple’s shares, and R3, which is the largest external shareholder, is also considering going public.”

In December 2020, CEO, Brad Garlinghouse and co-founder Chris Larsen of Ripple Labs was sued by the U.S. Securities and Exchange Commission (SEC) for the alleged illegal sale of $1.3 billion worth of XRP token as unregistered securities.  The trial continues to stand as of today.

SBI Group Supports Ripple Despite Lawsuit

Back in Davos in January, Ripple CEO Brad Garlinghouse predicted that over the year there would be IPOs in the crypto/blockchain space, adding that he wants his company on the leading side:

“In the next 12 months, you’ll see IPOs in the crypto/blockchain space. We’re not going to be the first, and we’re not going to be the last, but I expect us to be on the leading side…it’s a natural evolution for our company.”

SBI Group, Ripple’s largest shareholder based out of the United States, has long been a strong supporter of XRP, which is treated as a crypto asset in Japan.

Moreover, Kitao was the first to publicly support Ripple after the SEC lawsuit, saying the company's legal situation in the United States won't have any major impact on its business dealings worldwide.

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