In the evolving landscape of digital assets and pre-IPO equity platforms, clarity around ownership and asset structure is more critical than ever. Ripple CEO Brad Garlinghouse has stepped in to dispel widespread confusion, emphasizing a fundamental truth: XRP is not Ripple stock. This clarification comes amid growing scrutiny over Linqto, a private market investment platform that offers units tied to Ripple’s equity—sparking debate among investors and regulators alike.
Garlinghouse’s message is direct and strategic: while XRP serves as a digital asset designed for fast, low-cost cross-border payments, Ripple stock represents ownership in the company itself—two entirely distinct financial instruments with different rights, risks, and regulatory frameworks.
Understanding the XRP vs. Ripple Stock Distinction
One of the most persistent misconceptions in the crypto space is the conflation of XRP, Ripple’s native cryptocurrency, with shares of Ripple Labs, Inc. XRP operates on the XRP Ledger, an open-source blockchain network that functions independently of Ripple’s corporate structure. It does not confer equity, dividends, or voting rights.
Ripple stock, on the other hand, represents actual company equity—typically held by institutional investors, employees, and accredited individuals through private transactions. Unlike publicly traded stocks, Ripple shares are not listed on major exchanges and remain subject to lock-up periods and regulatory compliance.
Garlinghouse stressed that his recent comments pertain solely to Ripple equity, not XRP. He reiterated that Ripple has no affiliation with Linqto and has never authorized the sale of its stock through the platform. This distinction is crucial for investor education and regulatory transparency.
Linqto’s 4.7 Million Ripple Shares: What Investors Need to Know
According to Garlinghouse, Linqto currently holds approximately 4.7 million shares of Ripple stock. However, these shares were acquired through secondary market transactions from existing shareholders—not directly from Ripple. The company neither facilitated nor endorsed these transfers.
While Ripple acknowledges Linqto’s position as a shareholder, it maintains no control over how Linqto structures its investment products or manages its investor base. Garlinghouse admitted he does not know how Linqto handles distributions or exit opportunities for its unit holders.
This separation allows Ripple to distance itself from any potential legal or financial fallout related to Linqto’s operations—especially as U.S. authorities investigate whether the platform improperly marketed unregistered securities.
"XRP and Ripple stock are entirely different things. This post is about Ripple stock. Linqto is an independent company that bought Ripple shares from some of our existing shareholders. It should..."
— Brad Garlinghouse (@bgarlinghouse), July 2, 2025
Could Linqto Investors Still Benefit?
Despite the controversy, Garlinghouse acknowledged that Ripple’s stock value has appreciated significantly over time—offering potential upside for those who invested via Linqto units, provided the platform can fulfill its obligations.
This optimism is supported by Ripple’s recent $700 million tender offer** to repurchase shares at **$175 per share—a 135% premium over recent private market prices. The offer, available from June 10 to July 9 via the Nasdaq Private Market, was open to eligible vested shareholders and option holders.
For context, Ripple previously conducted a buyback at $125 per share in January 2025, signaling strong confidence in its valuation trajectory ahead of a potential IPO.
👉 See how institutional-grade buybacks are shaping confidence in pre-IPO tech investments.
If Linqto can distribute proceeds from such buybacks to its users, investors may realize substantial gains—even without a public listing.
The Refund Debate: Fairness vs. Market Reality
As criticism mounts against Linqto—especially after it froze user accounts in February 2025—some investors have demanded full refunds. However, legal advocate John Deaton, known for his support of XRP holders, argues against blanket reimbursement.
Deaton, who invested $30,000 in Circle via Linqto (now worth $157,000), believes refunding original costs would unfairly reward investors while allowing platforms like Linqto to profit from market appreciation they didn’t generate.
"Re-evaluating Linqto—I think it depends on the investment. If people get their Polysign money back, that’s a great deal since Polysign is worthless. But what about Ripple and Circle? I invested $30K in Circle @linqtoinc. My investment today is worth..."
— John E. Deaton (@JohnEDeaton1), June 30, 2025
His stance highlights a nuanced reality: not all pre-IPO investments are equal. While some ventures may fail (like Polysign), others—such as Circle and Ripple—have demonstrated strong growth, complicating calls for uniform compensation.
Ripple’s Strategic Reputation Management
With over 14,000 users affected by Linqto’s suspension, regulatory scrutiny is intensifying. Ripple is proactively managing its brand by clearly delineating its operations from third-party platforms offering access to its equity.
By affirming that:
- It has no business relationship with Linqto,
- It did not issue shares to the platform,
- And it does not oversee how Linqto serves its clients,
Ripple strengthens its position as a compliant, transparent entity navigating the complex path toward a potential public listing.
This strategy not only protects Ripple legally but also reinforces trust among institutional partners, regulators, and the broader crypto community.
Frequently Asked Questions (FAQ)
Q: Is XRP the same as owning stock in Ripple?
A: No. XRP is a digital asset used for payments and settlements. It does not represent ownership in Ripple Labs, Inc., nor does it entitle holders to dividends or voting rights.
Q: How many Ripple shares does Linqto own?
A: According to Ripple CEO Brad Garlinghouse, Linqto holds approximately 4.7 million shares, acquired through secondary market purchases from existing shareholders.
Q: Did Ripple sell shares directly to Linqto?
A: No. Ripple confirms it has never issued or sold shares directly to Linqto. The shares were obtained privately from other shareholders.
Q: Can Linqto investors participate in Ripple’s share buyback?
A: That depends on Linqto’s internal policies. While eligible shareholders can participate in the $175-per-share tender offer, it's unclear whether Linqto will pass these benefits to its unit holders.
Q: Why did Linqto freeze user accounts?
A: In February 2025, Linqto suspended operations amid regulatory pressure and internal reviews. The freeze affected over 14,000 users and remains under investigation by U.S. authorities.
Q: Is investing in pre-IPO companies through platforms like Linqto safe?
A: Such investments carry high risk due to lack of liquidity, regulatory uncertainty, and platform-specific vulnerabilities. Investors should conduct thorough due diligence and understand they are purchasing illiquid securities with no guaranteed exit.
Core Keywords:
- XRP
- Ripple stock
- Brad Garlinghouse
- Linqto
- pre-IPO investment
- Ripple share buyback
- digital assets
- secondary market shares
Ripple’s proactive communication underscores a broader trend in fintech: the need for clear differentiation between blockchain-based tokens and corporate equity. As the line between digital assets and traditional finance blurs, investor education becomes paramount—and Ripple is taking steps to lead by example.