Sam Daodu
5 min read
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.
