There’s a possibility that popular cryptocurrency exchange OKX might join Coinbase in becoming the latest crypto company to launch an IPO. According to crypto journalist Yueqi Yang on X, OKX is considering an initial public offering (IPO) in the United States after re-entering the U.S. market in April this year. The return follows a half-billion-dollar settlement payment to the U.S. Department of Justice over alleged money transmission violations.
OKX’s Chief Marketing Officer, Haider Rafique, said in an interview that the exchange is open to considering an IPO in the future, and will pick the United States as the perfect place to go public. While no official timeline has been established, OKX’s IPO move highlights the company’s long-term objective to strengthen its foothold in the United States. Already, OKX has a presence in the United States after establishing its regional headquarters in San Jose, California. It was a move to broaden access to digital assets securely, transparently, and compliantly.
OKX’s Move Aligns with the Broader Trend of Crypto Companies Going Public
If OKX should go public, it will mirror similar steps taken by companies like Circle, which made its debut on the New York Stock Exchange this year. Circle’s public debut raised about $1.1 billion, with its share price surging nearly 450%, from $31 to $161. The company’s capitalization also grew to $33.617 billion, surpassing everyone’s expectations.
The successful market entry of Circle has set a precedent for other crypto firms that are considering following similar routes. Apart from OKX, Gemini, Bullish, and FalconX are also preparing for an IPO. Going public has several advantages for crypto companies, such as legitimizing the firm and its offerings, onboarding more investors, and receiving a massive inflow of capital to keep the company afloat.
Of course, going public may not be icing on the cake for every company, especially if you’ve been under scrutiny of watchdogs like the SEC. For instance, Tether has faced criticism for a lack of transparency in its reserves. The United States SEC has on numerous occasions accused the stablecoin issuer of manipulating its reserve to increase the USDT supply. As a result, Tether may have to revamp its structure or provide proof of transparency before it can go public. Otherwise, the stablecoin issuer may face fresh charges.
OKX’s IPO Decision Follows Massive Settlement with the DOJ
After pleading guilty to violating anti-money laundering laws, OKX finally agreed to settle with the Department of Justice for over $500 million. The exchange pleaded guilty to serving the United States customers without a money transmitter license. In furtherance of that, OKX criminally forfeited $420.3 million in fees earned from U.S. customers and paid a $84.4 million criminal fine.
FBI Assistant Director James Dennehy revealed that OKX was actively seeking customers in the United States from 2018 to 2024, and went so far as to advise individuals to use fake identities to circumvent the law. This came as a huge surprise, as the exchange had an official policy of not allowing Americans to use any of its services. According to the DOJ, retail and institutional traders from the United States conducted over $1 trillion worth of transactions on the platform.
OKX will try to bounce back from this setback and continue to serve customers with full compliance, while prioritizing innovation. For now, an IPO may seem the next possible move to add legitimacy to its dealings and foster investor trust.