XRP vs Ripple Stock: Ripple CEO Clarifies Key Distinction

XRP and Ripple equity are not the same—this key distinction was emphasized by Ripple CEO Brad Garlinghouse as the company distances itself from the controversial practices of the investment platform Linqto. The CEO’s remarks come amid federal scrutiny into how Linqto marketed and sold so-called “representative units” tied to pre-IPO Ripple shares.

In a recent post on social media, Garlinghouse reiterated that XRP is a digital asset independent of Ripple’s corporate equity, and any confusion between the two should be corrected. He stressed that his commentary was focused exclusively on Ripple stock, not XRP tokens, underlining the need for investors to understand the separation between Ripple’s blockchain-based cryptocurrency and the company’s ownership shares.

The clarification follows increased concerns from investors who were under the impression that purchasing Linqto units granted them direct exposure to Ripple’s technology, when in fact they were buying partial interests in Ripple stock obtained through secondary markets. Garlinghouse directly addressed the misinformation by confirming that Ripple has no formal business arrangement with Linqto.

According to the Ripple CEO, Linqto currently holds approximately 4.7 million shares of Ripple. However, these shares were not issued by Ripple to Linqto; rather, they were acquired by Linqto through independent transactions in the secondary market from other shareholders. This critical point was highlighted to assure investors that Ripple remains informed about who holds its equity, even without direct involvement.

Garlinghouse made it abundantly clear that Ripple was not given any authority in how Linqto structured its investment offerings or in the way it engaged with individuals seeking to purchase exposure to Ripple equity on the platform. In his own words, he has “no idea” how Linqto operated those transactions or managed investor participation. As authorities in the U.S conduct their investigation into Linqto’s business practices, Ripple is drawing a line to protect itself from any legal entanglement.

Despite the regulatory troubles surrounding Linqto, Garlinghouse offered a silver lining for affected investors. He pointed out that the valuation of Ripple’s shares has appreciated significantly over time—a trend that could potentially benefit those who obtained exposure through Linqto, assuming the platform upholds its financial responsibilities. This optimism was backed by the company’s ongoing buyback activity, which highlights Ripple’s financial strength and growing valuation leading up to its anticipated IPO.

In June, Ripple initiated a $700 million share repurchase program, offering $175 per share—a price 135% above the most recent private market rates. This move follows an earlier buyback in January, which was priced at $125 per share. The current offer, managed via Nasdaq Private Market and open from June 10 to July 9, is available to holders with vested stock or eligible options. These buybacks not only increase shareholder confidence but also signal Ripple’s intent to consolidate its equity base ahead of a public offering.

However, not everyone is optimistic. In light of Linqto’s halted operations and frozen user accounts earlier this year—actions affecting over 14,000 users—some investors have demanded that the platform issue refunds for their original investments. Pro-XRP attorney John Deaton pushed back against this notion, arguing that returning funds at purchase cost would result in undue financial gain for Linqto at the expense of investors. Deaton disclosed that his $30,000 investment in another company, Circle, has ballooned to $157,000—making a refund economically unfair. This perspective adds further complexity to the situation, as legal and financial accountability remains murky in the absence of transparency by Linqto.

The controversy has created an opportunity for Ripple to reinforce the separation of its brand from third-party investment platforms. By continuing to assert that XRP is distinct from Ripple equity and reiterating that it has no control over how companies like Linqto operate, Ripple aims to maintain trust among its community of stakeholders and preempt any fallout from the unfolding investigation.

Related: Expert Advice: Sell XRP If You’re Confused

As federal scrutiny intensifies, Ripple is staying steadfast in its commitment to transparency, distancing itself from external entities, and focusing on shareholder value, clearly defining its role in the crypto and fintech ecosystem.