Recent comments from Ripple CEO Brad Garlinghouse clarified the confusion surrounding XRP and Ripple shares, as well as the situation with the Linqto platform.
Separation of Assets: XRP and Ripple Shares
Garlinghouse stated that XRP, a digital asset, and Ripple shares are entirely separate assets. His remarks were directed solely at Ripple shares and did not concern XRP. He indicated that confusion had arisen among retail investors due to the sale of Ripple shares through Linqto, where some investors mistakenly believed they were acquiring equity directly from Ripple.
Ripple's Position on Linqto's Activities
Garlinghouse clarified that Linqto, the platform involved in these share transactions, is an entirely independent company with no official affiliation to Ripple. Linqto acquired approximately 4.7 million Ripple shares, but these shares were not directly purchased from Ripple. Instead, Linqto obtained them through secondary market transactions from early Ripple shareholders. Ripple's role was limited to confirming that Linqto does indeed hold those shares, but this confirmation does not imply that Ripple endorsed or partnered with Linqto.
Ripple's Lack of Control Over Linqto's Operations
Garlinghouse was clear that Ripple has never had any formal business relationship with Linqto. Ripple does not know how Linqto managed the sales process for what it described as 'representative units' of Ripple shares, and therefore cannot provide reassurances regarding Linqto's business practices or how it plans to address customer concerns. To protect its brand, Ripple decided in late 2024 to halt any further secondary share transactions involving Linqto.
Garlinghouse's statement reinforces Ripple's position that there is a clear distinction between XRP and Ripple shares. The confirmation of Linqto's share ownership by Ripple does not imply any endorsement or participation in Linqto's activities.
