Ripple, the Chief Executive Officer, Brad Garlinghouse, stated that the company is expected to set new highs this year, with annual revenue projected to more than double year-on-year. He attributed this performance to the company's long-term focus on institutional clients and infrastructure business, rather than relying on the activity of retail traders.
Long-term betting on institutional business
The company disclosed that Ripple has long regarded connecting traditional finance with decentralized finance as its core direction. Garlinghouse stated that this approach was not popular within the crypto industry in the early years; some practitioners at that time argued that the financial system should be fully migrated onto blockchain to be considered true crypto finance.
He believes that this view ignores the fact that the real financial system is still operating within the existing legal and regulatory frameworks. Until the global financial system is fully decentralized (or “on-chain”), traditional financial infrastructure will continue to exist for a long time, which has also allowed Ripple’s early business choices to gradually gain more recognition.
Retail-driven model under pressure
Garlinghouse also discussed industry differentiation in light of the current market downturn. He stated that if a company's revenue is highly tied to asset prices, when market prices fall by 50%, revenue often contracts significantly as well. This pressure has led to layoffs within the industry, and some trading platforms have even ceased operations.
He used this to emphasize that companies that rely too heavily on retail trading volume are more vulnerable during down cycles. In contrast, institutional services and infrastructure businesses are closer to long-term contracts and sustained demand, thus having a stronger ability to withstand fluctuations.
Claiming to set a record this year
Garlinghouse indicates that Ripple is making progress towards record-breaking performance this year, with revenue expected to more than double year-on-year. He also mentioned that if the entire crypto industry faces a more favorable external environment, the company's growth could be even stronger.
He also mentioned the institutional shift of Kraken in recent years, stating that the exchange has disclosed some revenue data. However, since Kraken is still a non-listed company, its public financial information is not complete. In his judgment, more and more companies and investors are shifting their focus on long-term value from retail trading volume to infrastructure and institutional services.
