Ripple Labs Announces $285 Million Share Buyback

Ripple Labs, known for its cryptocurrency XRP, recently made headlines by buying back $285 million worth of its shares. This move pegs the company’s value at an impressive $11.3 billion. Announced on January 10, this initiative allows early investors and employees to sell up to 6% of their stake in the company.

The company has earmarked $500 million for this buyback. This fund will cover the conversion of restricted stock units to shares and related taxes. Ripple’s decision to repurchase shares comes amid ongoing regulatory challenges, particularly in the United States.

CEO Brad Garlinghouse highlighted the company’s cautious stance regarding a public listing in the U.S. due to these uncertainties. Despite these challenges, Ripple maintains a strong financial position, with over $1 billion in cash and an extensive holding of XRP coins, valued at more than $25 billion.

Founded in 2012, Ripple has been at the forefront of revolutionizing cross-border payments. It actively promotes XRP in its payment systems to facilitate international transactions. Garlinghouse pointed out that despite the SEC lawsuit, the majority of Ripple’s clients are financial institutions based outside the U.S., accounting for 95% of their customer base.