Ripple, a leading blockchain technology company, may delegate its cross-border payments services to subsidiaries in the future, according to predictions made by a well-known XRP enthusiast. The enthusiast, who goes by the name WrathofKahneman (WoK), believes that this move would occur if Ripple goes public through an initial public offering (IPO). The purpose of delegating these services to subsidiaries would be to separate Ripple from XRP, allowing each entity to focus on its respective goals and objectives.
By moving its cross-border payments services to subsidiaries, Ripple would be able to accelerate the licensing process in various markets. Furthermore, this move would enable Ripple to establish strategic partnerships with local partners, facilitating its expansion into new markets. This strategic restructuring would also benefit XRP by allowing it to operate as an autonomous entity exclusively focused on the development of payment services.
WoK suggests that these subsidiaries could be based outside the United States, potentially offering tax benefits depending on the jurisdiction they are located in. Additionally, these subsidiaries would have the freedom to acquire other smaller companies involved in remittance without requiring approval from Ripple shareholders.
It is no secret that Ripple has been considering the possibility of going public, following in the footsteps of Coinbase, the first crypto firm to do so. However, Ripple’s ongoing legal battle with the U.S Securities and Exchange Commission (SEC) has posed a significant hurdle to these plans. Despite this, the excitement surrounding Ripple’s potential IPO can be seen among executives, investors, and XRP holders.
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The prediction made by WoK has garnered positive reactions from the XRP community. However, one commentator suggests that XRP may need to be renamed to further distance itself from Ripple. WoK disagrees with this viewpoint, stating that while Ripple may separate itself from XRP, renaming the digital asset could lead to complications.
There is some concern that if Ripple distances itself from XRP, the digital asset may struggle to rally, regardless of Ripple’s success. Historically, XRP has benefitted from the growth of Ripple, particularly through partnerships and the sale of its products.
It is important to note that these predictions are speculative, and Ripple has not confirmed any plans regarding the delegation of its cross-border payments services. Currently, the company’s focus remains on winning its legal battle with the SEC before proceeding with any IPO plans.
In conclusion, the possibility of Ripple potentially delegating its cross-border payments services to subsidiaries after an IPO is an exciting prospect for both Ripple and XRP. By separating these entities, they can pursue their goals independently and expand into new markets. However, it is crucial to monitor Ripple’s legal situation with the SEC and await official announcements from the company to determine the validity and timeline of these predictions.
