SAN FRANCISCO--(BUSINESS WIRE)--Ripple, creator of XRP and three real-time cross-border payments solutions, has a significant growth opportunity in the $1.75 trillion payments sector, according to a new report from SharesPost.
Ripple is one of a few companies that is successfully building real-time, cross-border payments solutions based on blockchain technology, the analysis said. The firm has partnerships with more than 200 banks and payments providers in North America, Europe and Asia.
The company’s three solutions – xCurrent, xRapid, and xVia – enable consumers to simplify the exchange of money across borders and streamline the process via the RippleNet platform. RippleNet has deployed blockchain technology to seamlessly exchange money regardless of location or bank.
Ripple is also the creator of XRP, now one of the top three cryptocurrencies after Bitcoin and Ethereum. The company has created 100 billion XRP coins.
“Ripple enjoys a significant market opportunity and is uniquely positioned to grow given its partnerships with major financial institutions around the world,” said SharesPost Research Analyst Alejandro Ortiz.
The report also includes a valuation framework using past M&A, publicly available comps and secondary market trades. Based on that data, the analysis estimates a high-teens enterprise valuation-to-revenue multiple.
In terms of risks, the report noted that Ripple is likely to face significant competition from major banks, credit card companies and other financial services firms already in the payments business. The uncertain regulatory environment regarding cryptocurrency is also another risk for the company.
At the same time, the report said Ripple could be an attractive acquisition target for large financial institutions trying to adapt to a fast-changing industry.
To view all of SharesPost’s recent research reports and insights, click here.
About SharesPost, Inc.
SharesPost is a FINRA-registered broker-dealer, SEC-registered Alternative Trading System (ATS) and Registered Investment Advisor. SharesPost helped launch the secondary market for private tech companies in 2009 and has built the leading platform for secondary transactions and digital securities. SharesPost provides the private tech asset class with a suite of trading and lending solutions to facilitate shareholder and option holder liquidity. With nearly $5 billion in secondary market transactions in the shares of more than 250 leading technology companies, SharesPost provides the trading, research and online tools to transact in the private market with confidence. SharesPost has trading operations with licensed brokers in San Francisco, Menlo Park, and New York City. For more information, visit sharespost.com.
Any securities offered are offered by SharesPost Financial Corporation, a member of FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost Inc. Certain affiliates of these entities may act as principals in such transactions.
Investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.
Cautionary Note Regarding Forward-Looking Statements
The matters described herein contain forward-looking statements. These statements include, but are not limited to, statements about research on late-stage, venture-backed companies. SharesPost cautions that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements involve a number of risks, uncertainties or other factors beyond SharesPost’s control. SharesPost undertakes no obligation to release any revisions to any forward-looking statements.
