Caught in a Western legal storm, Ripple swims East to hasten IPO

A historic SEC lawsuit, with a potential US$1.3 billion fine, has forced financial services and crypto company Ripple to focus on Asia. Despite local investors and a truckload of crypto money, building a business that’s IPO-ready is a tough challenge

Ripple’s co-founders stand accused of operating an unregistered security, according to a US federal government suit

Ripple has long had investors in Asia; now, it’s doubling down with a big-name hire and the first of what it hopes are many strategic investments

But banks are cautious, and startups aren’t all buying Ripple’s technology and its crypto-based incentives

Still, Asia remains the most fertile ground to build a business that can realise Ripple’s goal of an IPO

San Francisco-headquartered fintech Ripple has been busy in the last couple of months. The US$10 billion-valued company, most known for its cryptocurrency XRP, is doubling down on Asia.

In March, it snapped up 40% of Malaysia-based remittance and cross-border payments service Tranglo, which has a network spanning over 100 countries. And a week prior to that, it hired seasoned Asia Pacific executive Brooks Entwistle to head its regional office in Singapore. Entwistle is a 22-year Goldman Sachs veteran who previously led Uber’s Southeast Asia business.

For Ripple, the lure of Asia, and particularly Southeast Asia, is clear.

AUTHOR

Jon Russell

Jon Russell is Southeast Asia editor for The Ken based in Bangkok. Originally from the UK, Jon moved to Thailand in 2008. He’s passionate about telling thoughtful business stories, and tracking the impact of the internet in his adopted home of Southeast Asia.

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