Brad Garlinghouse told CNBC that he will explore the possibility of an initial public offering once the lawsuit with the US Securities and Exchange Commission is over.
Cross-border payments can be made using the world's sixth-largest currency, the sixth-largest coin, called XRP. The cost and speed of the transaction can be lowered with the conversion of fiat to XRP. The coin is converted back to the US currency.
The SEC alleges that Garlinghouse and the executive chairman of the company engaged in an illegal securities offering. The digital coin should not be treated as a security because it would bring it under a lot of regulatory scrutiny.
The lawsuit has been going on for more than a year and is expected to end this year. The company will look into a public listing after that.
I think we want to get certainty and clarity in the United States with the SEC. Garlinghouse told CNBC that he was hopeful that the SEC would not slow that process down any more than they already have.
We are at a point in scale where that is a possibility. We will look at that once we are past this lawsuit with the SEC.
Billions of dollars of value have been wiped off of the market due to the price crash of cryptocurrencies. The last 30 days has seen a 42% decline in the value of the coin.
The stocks related to cryptocurrencies have been hammered. Digital currency trading platform Robinhood has seen its stock price drop by 50% this year.
Garlinghouse said the business continues to grow. In the first quarter of this year, volume for its cross-border payments product that uses XRP totaled $8 billion, compared to $1 billion in the same period last year.
Our growth is outside the United States. Garlinghouse said that it will probably continue until we get clarity and certainty in the U.S.
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