Ripple’s CEO, Brad Garlinghouse took to Twitter to announce that his company has bought back its Series C shares which were sold to investors to raise funds in December 2019, at a $15 billion valuation.
Ripple which is linked to the XRP token, has been described in the cryptocurrency world as the ‘Banker’s Coin’, because its technology is designed to let banks and other financial services firms send money across borders faster and at a lower cost. The company also markets another product that utilizes XRP for cross-border payments called On-Demand Liquidity and also helps with the issuance of Central Bank Digital Currencies (CBDCs).
This news also comes while the Securities and Exchange Commission (SEC) case against Ripple is ongoing. In December of 2020, the SEC charged Ripple with allegations that its executives sold $1.3 billion worth of XRP in an unregistered securities offering. Ripple objected to the claims, saying that XRP should not be considered a security.
What you should know
Brad Garlinghouse on Twitter went further to say, “2022 – “slow down” is not in our vocabulary. Even with 2021’s headwinds, it was our best year on record, and Ripple’s financial position ($1B in the bank) is the strongest we’ve ever been.
“RippleNet is much more than cross-border payments – it’s bringing crypto-native services such as liquidity to enterprises. Today, the network has a volume run rate >$10B. Huge props to the team for continuously upping their game & leaning into new capabilities every year.
“RippleX – full speed ahead on establishing a multitude of capabilities to the XRP Ledger – NFTs, CBDCs, interoperability bridges, sidechains and so much more – working hand in hand with devs and partners around the world. It’s a multichain world after all.”
The SEC case so far
In 2021, Ripple executives shared insights on the case and its impact on business. Garlinghouse stated that Ripple’s expansion to the Asia-Pacific region was undamaged by the SEC lawsuit. The CEO also mentioned that the company is looking at a possible initial public offering as soon as the case is settled.
Ripple also received support from XRP token holders, who filed “friends of the court” briefs, which would allow them to join the case as defendants and support Ripple in its claims that the token does not violate securities laws. However, the judge ruled in October that individual XRP holders cannot act in Ripple’s ongoing lawsuit as defendants.
According to the CNBC report, Brad Garlinghouse stated that the company is making good progress despite “a slow-moving judicial process,” but believe the case will likely conclude in 2022. He further stated, “Clearly we’re seeing good questions asked by the judge. And I think the judge realizes this is not just about Ripple, this will have broader implications.”
It is evident that Ripple has a progressive year in 2021. For example, Bhutan, a Buddhist kingdom on the Himalayas’ eastern edge, known for its monasteries, fortresses and dramatic landscapes, partnered with Ripple to pilot a central bank digital currency in the South Asian country. Asides from this, Ripple also made a strategic ESG investment with Nelnet Renewable Energy to the tune of $44 million, into one of Nelnet’s solar energy investment funds.
Also in the year, the fintech firm announced that it plans to launch a liquidity hub, a new service that is aimed at finance companies, which will give them the ability to offer cryptocurrency trading to its customers. The liquidity hub is currently in the preview stage and will launch in 2022.
This news has had a positive impact on the price of XRP even with the ongoing market volatility being experienced in the crypto space. XRP is currently up 5.80%, to trade 63 cents as of the time of this reporting.