Key Factors Influencing Ripple's Valuation
- •Ripple’s potential IPO valuation may directly rise with XRP’s market price.
- •New accounting rules now link Ripple’s value to crypto assets.
- •Research indicates Ripple’s worth could exceed $100 billion as XRP climbs.
Crypto researcher SMQKE has shared a document revealing that Ripple’s potential IPO valuation is deeply connected to the market price of XRP, its native digital asset. This relationship has gained attention as analysts highlight how recent accounting rule changes could make Ripple’s valuation move in direct correlation with XRP’s performance.
Ripple holds approximately 46 billion XRP tokens, making the cryptocurrency its most significant asset. A 2023 valuation report estimated Ripple’s worth at about $28.6 billion when XRP was trading at $0.60.
At that time, private market valuations carried substantial discounts of up to 84 percent in secondary trades and 60 percent in tender offers. These markdowns reflected traditional accounting practices that undervalued digital assets.
Impact of New Accounting Standards
The Financial Accounting Standards Board (FASB) introduced ASU 2023-8, a new standard requiring companies to report cryptocurrency holdings at fair market value. This change marks a significant shift for digital asset companies, removing previous barriers that prevented accurate reporting of crypto assets.
Under these new guidelines, Ripple’s XRP holdings could now appear on its financial statements at their real-time market price. With XRP currently valued at around $2.24, the same model implies that Ripple’s worth could rise beyond $100 billion.
This link means any movement in XRP’s price directly influences Ripple’s potential IPO valuation. The stronger the XRP market becomes, the higher Ripple’s financial position appears on paper.
Reports from SBI Group indicate that Ripple’s valuation has not yet reflected its unlisted shares. The group clarified that a definitive event, such as an IPO or a similar transaction, would finalize Ripple’s valuation. Once this happens, significant financial gains are expected to be recognized in its investment portfolio.
Ripple's Growth and Future Outlook
Ripple continues to expand its ecosystem through initiatives such as Ripple Payments and RLUSD, a dollar-backed stablecoin launched under regulatory supervision. These developments highlight Ripple’s growing role in international finance and digital payments.
The combination of XRP’s market strength and the new accounting standards has created a scenario where Ripple’s financial value could mirror the real-time price of XRP. As explained by researchers, this evolving link between token performance and corporate valuation may redefine how crypto-based companies are assessed in traditional markets.