Quick Read
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Ripple's $50 billion valuation stems from businesses like Ripple Prime and RLUSD, not XRP, which has dropped nearly 50% over the past year.
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XRP token holders received no cash or equity from Ripple's $750 million share buyback, as the transaction only benefited investors and employees.
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A Ripple IPO would raise capital and create insider liquidity but may offer little lasting benefit to XRP without a new compelling use case for the token.
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Ripple, the company behind the cryptocurrency XRP(CRYPTO: XRP), is currently valued at around $50 billion. This valuation reflects a recent $750 million share buyback, in which the company repurchased stock from both investors and employees. However, Ripple has not gone public and has not filed an S-1 registration statement with the SEC, which is required for an IPO, so a Ripple IPO remains uncertain for now.
XRP is trading at $1.30, up 1.7% over the last 24 hours. However, it has declined 16.9% over the past month and an alarming 49.8% over the past year. Despite Ripple's rising valuation, XRP has not benefited from the increase.
Ripple's $50 Billion Valuation Rests on Its Businesses, Not XRP
A share buyback involves a company using its cash reserves to buy back shares from existing stockholders. For a private company like Ripple, this offers early investors and employees a way to cash out without launching an IPO, and the price paid for these shares contributes to the company's reported valuation. Unfortunately, XRP token holders have not received any cash or equity from this transaction.
Ripple's operations have expanded beyond just cross-border payments. The company manages Ripple Prime, formerly known as Hidden Road, a prime brokerage that caters to hedge funds by lending, clearing trades, and holding assets. Ripple Treasury, previously known as GTreasury, offers cash-management software to corporate finance teams.
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Additionally, Ripple issues RLUSD, a stablecoin that is backed by U.S. dollars. In late 2025, it reportedly received conditional approval from the Office of the Comptroller of the Currency (OCC) to establish Ripple National Trust Bank, intended to protect RLUSD reserves and manage cryptocurrency for clients.
As a private entity, Ripple doesn't publish audited financial statements. This means outsiders can't determine how much of its revenue comes from XRP sales versus service fees. Reports suggest that Ripple's revenue goals exclude XRP sales, but the tokens released from its monthly escrow—a locked account that gradually releases tokens—have significantly influenced the company's profits over time.
Investors Can't Buy Ripple Stock on Public Markets
Investors who meet certain income or net worth requirements may occasionally purchase Ripple shares on private secondary markets that connect sellers with buyers. In contrast, Evernorth Holdings( NASDAQ: XRPN ) is a publicly traded company that holds XRP, giving investors exposure to the token's price movements, though it does not equate to ownership in Ripple itself.
Evernorth began trading on Nasdaq on October 12, closing at $15 on October 23. Importantly, Ripple held Evernorth's only outstanding shares as of June 30 and has lent money to a related entity, Pathfinder Digital Assets, at 3.81%.
Ripple's Products and Deals Run Without Requiring XRP
While discussions of buybacks and IPOs continue, they don't directly address what many XRP holders want: a clear commitment to use XRP for payments and trades. This gap became evident when Korean banks also partnered with Ripple. As a result, Ripple's valuation seems to rely more on its overall business model than on guaranteed future demand for XRP.
Ripple CEO Brad Garlinghouse mentioned in an August 18 interview at the Wyoming Blockchain Symposium that the company has happily remained private for a long time. While he suggested shifting toward a more neutral stance on going public, analysts see this as optionality rather than an immediate policy change. The buyback initiative appears designed to keep current shareholders satisfied while maintaining Ripple's private status, indicating no rush to go public.
Furthermore, Ripple's acquisitions and the development of RLUSD primarily involve traditional currencies, and during a period when private shareholders were cashing out, XRP's value dropped significantly. The competitive landscape has also intensified: on September 18, the OCC conditionally approved national trust banks for companies like Bastion, Catena, and Agora, diluting Ripple's unique positioning.
Could a Ripple IPO Help XRP?
An IPO could greatly benefit Ripple as a company, but it may have little impact on XRP. Going public would raise capital and provide a public market for insiders to sell shares without necessarily buying XRP. An IPO announcement might spark brief interest in XRP, but without a new use case for the token, that interest could quickly fade.
The most noticeable change could be increased transparency, as a public Ripple would need to disclose how much XRP it sells. Investors should watch whether and when Ripple files an S-1 with the SEC. If the filing shows that XRP sales are decreasing as a share of revenue, or that IPO funds could replace token sales, XRP might benefit from higher demand. However, if Ripple continues to rely heavily on XRP sales for growth, external shareholders may pressure the company to increase those sales, which could complicate the token's outlook.
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