Ripple CEO Clarifies: XRP Is Not Ripple Stock, Linqto Holds 4.7 Million Shares, Not XRP

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In a recent statement addressing growing investor concerns, Ripple CEO Brad Garlinghouse has drawn a clear line between XRP, the digital asset, and Ripple equity, the company's private stock. This clarification comes amid mounting scrutiny over Linqto, a platform offering access to pre-IPO shares of high-profile fintech firms — including Ripple — and its current legal challenges with U.S. regulators.

Garlinghouse emphasized that XRP is not stock and does not confer ownership in Ripple Labs. His comments were aimed at dispelling widespread confusion among retail investors who may conflate tokenized assets with traditional equity instruments.

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Understanding the XRP vs. Ripple Stock Distinction

One of the most persistent misconceptions in the crypto space is the idea that holding XRP equates to owning part of Ripple the company. This is false.

Garlinghouse reiterated that Ripple has no affiliation with Linqto and did not issue or authorize any of the "units" being sold on the platform. These units are financial instruments created by Linqto to fractionalize shares of private companies, allowing smaller investors to gain exposure without direct ownership.

“XRP and Ripple equity are fundamentally different,” Garlinghouse stated. “My comments relate solely to Ripple stock — not XRP.”

This distinction is critical for regulatory, legal, and investment clarity — especially as speculation around Ripple’s eventual public listing intensifies.

Linqto’s Position: Secondary Market Purchases Only

According to Garlinghouse, Linqto currently holds approximately 4.7 million shares of Ripple stock. Importantly, these were acquired through secondary market purchases from existing shareholders, not issued directly by Ripple.

By disclosing this figure, Ripple aims to increase transparency and reassure investors that it is aware of major off-exchange holdings. However, the company maintains it has no control over how Linqto structures its products, markets them, or manages investor expectations.

“Linqto is an independent company. It bought Ripple shares from some of our existing shareholders. It should be clear: we don’t endorse their product or operations.”
— Brad Garlinghouse (@bgarlinghouse), July 2, 2025

This separation allows Ripple to distance itself from potential liabilities tied to Linqto’s ongoing regulatory issues, which include investigations into whether the platform violated securities laws by offering unregistered investment contracts.

What This Means for Linqto Unit Holders

Despite the controversy, there may still be value in Linqto’s Ripple units — but with significant caveats.

Garlinghouse acknowledged that Ripple’s private share value has appreciated substantially over recent years. In fact, just last month, Ripple launched a $700 million tender offer** to repurchase shares at **$175 per share — a 135% premium over recent private market valuations. The offer was open via Nasdaq’s Private Market from June 10 to July 9 and targeted vested shareholders and option holders.

For context:

These figures suggest strong confidence in Ripple’s long-term valuation — good news for anyone holding legitimate equity or equity-linked instruments.

However, Linqto unit holders do not hold registered shares. Their rights depend entirely on Linqto’s ability to fulfill obligations and distribute proceeds if and when liquidity events occur — such as an IPO or further buybacks.

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Legal Challenges and Investor Backlash

Linqto faced a major crisis in February when it froze user accounts and halted withdrawals, sparking outrage from more than 14,000 affected users. The move triggered calls for refunds and intensified regulatory scrutiny.

While some investors demand full reimbursement, prominent XRP supporter and attorney John Deaton argues against blanket refunds based on original investment cost. Drawing from personal experience — having invested $30,000 in Circle via Linqto (now worth ~$157,000) — Deaton warns that refund mandates could unfairly penalize platforms facilitating early-stage access.

“Re-evaluating Linqto — it depends on the investment. If people get their Polysign money back, that’s a win — Polysign is worthless. But what about Ripple and Circle?”
— John E. Deaton (@JohnEDeaton1), June 30, 2025

Deaton highlights a key nuance: not all pre-IPO investments are equal. While some ventures fail (like Polysign), others — such as Circle and Ripple — have demonstrated strong growth trajectories. Forcing refunds ignores potential upside and could deter future innovation in private market access.

FAQ: Common Questions About XRP, Ripple Stock, and Linqto

Q: Can I own real Ripple stock through Linqto?

A: No. Linqto sells "units" that represent economic exposure to Ripple stock but do not grant direct ownership, voting rights, or shareholder status.

Q: Is XRP a security or company stock?

A: XRP is a digital asset used for payments and settlements. It is not a security nor does it represent equity in Ripple Labs.

Q: Did Ripple partner with Linqto?

A: No. Ripple has no business relationship with Linqto and did not issue any shares to the platform directly.

Q: Are Linqto unit holders eligible for Ripple’s share buyback?

A: Only direct shareholders can participate. Linqto would need to act on behalf of unit holders if it chooses to tender shares.

Q: Could Ripple go public soon?

A: While unconfirmed, the $700 million buyback at a steep premium signals internal confidence in near-term valuation — often a precursor to IPO planning.

Q: Should I invest in pre-IPO platforms like Linqto?

A: Exercise caution. These are high-risk, illiquid investments with complex legal structures. Always verify regulatory compliance and understand the terms fully.

Final Thoughts: Transparency Over Speculation

As interest in pre-IPO tech investments grows, so does the need for clarity. Ripple’s proactive stance — clarifying what XRP is not, disclosing third-party holdings, and distancing itself from unauthorized platforms — reflects a commitment to investor education and regulatory integrity.

The situation also underscores a broader trend: democratizing access to private markets must be balanced with transparency, compliance, and realistic expectations.

Whether you're investing in digital assets like XRP, exploring pre-IPO equity opportunities, or monitoring fintech innovation, understanding the difference between tokens and stocks is essential.

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