- An XRP proponent WrathofKahneman (WoK) has shared his prediction for a possible restructuring when Ripple finally IPOs.
- xBorder will likely be delegated to a possible subsidiary, detaching and making XRP autonomous.
Ripple could eventually move its cross-border payments services to subsidiaries according to a prediction by a popular XRP enthusiast. This would allow the issuing company, Ripple, to distance itself from XRP. The influencer who goes by the name WrathofKahneman on X (formerly Twitter), notes this move would come in the event that Ripple went public through an initial public offering (IPO).
Doing so would help accelerate its licensing in different markets. It would further allow it to forge strategic partnerships with local partners in its global expansion as the company looks to penetrate new markets. The separation of the brand and the XRP label will be beneficial for XRP as well which will be free to operate as an autonomous entity, focusing exclusively on the development of the payment services.
WrathofKahneman further raised the possibility of the subsidiaries being based outside the U.S. which according to his view could offer tax benefits depending on the jurisdiction they are based. In addition, these subsidiaries would be able to acquire other smaller companies possibly those involved in remittance without needing the approval of Ripple shareholders.
It is no secret that Ripple has been looking into the possibility of going public, becoming only the second crypto firm to do so after Coinbase. However, the ongoing lawsuit with the SEC has been a major barrier to these plans. While these plans have been in discussion, the excitement from the executives, investors, and especially XRP holders has been evident.
Related: Harvard Publishes Case Study About Ripple and Its Business Model in Preparation for Potential IPO
‼️Scoop! #Ripple ICO Incoming – https://t.co/ObBD5KdLY4 pic.twitter.com/YiJXsBJyg5
— WrathofKahneman (@WKahneman) October 16, 2023
Equally, the XRP community has reacted positively to the aforementioned prediction. However, one commentator noted that XRP could be renamed to distance itself from Ripple. WrathofKahneman did not agree with this prediction, stating, “I can understand Ripple distancing itself from XRP, but not renaming XRP as that would be structurally hairy.”
If Ripple distances itself from XRP, some might be concerned that this could see the digital asset struggle to rally regardless of the success of Ripple. Historically, XRP has been a beneficiary of the growth of RIpple, especially when forging partnerships or the sale of its products.
It is important to note that the above predictions are only speculations and Ripple is yet to give its stand. For now, the team is focused on winning the SEC lawsuit before going forward with any IPO plans.
