Ledger eyes $4bn US IPO as critics question past breaches and new fee strategy

Ledger’s plans for a potential US initial public offering, valuing the company at more than $4 billion, have reignited debate over the crypto security firm’s track record, as community scrutiny intensifies over past data breaches and recent monetisation changes.

The Paris-based hardware wallet maker is working with major investment banks on a possible New York listing that could take place as early as this year, according to a Financial Times report. 

The move would mark another high-profile crypto-related IPO in the US, following recent listings and filings from firms including BitGo, Circle, Gemini, and Bullish.

IPO ambitions follow record year for crypto security demand

Ledger manufactures hardware wallets designed to allow users to store cryptocurrencies offline, reducing exposure to exchange hacks and online attacks. 

The company has benefited from renewed interest in self-custody tools as crypto adoption has expanded and high-profile security incidents have continued across the sector.

Founded in 2014, Ledger was valued at roughly $1.5 billion in its most recent funding round in 2023.

A $4 billion IPO valuation would represent a significant step-up, underlining growing investor appetite for crypto infrastructure companies rather than speculative trading platforms.

The planned US listing also reflects a broader shift in crypto capital markets, with executives increasingly citing New York as the centre of liquidity and institutional demand for digital asset businesses.

Community scrutiny resurfaces over Ledger security history

While the IPO plans underscore Ledger’s commercial momentum, they have also drawn renewed criticism from parts of the crypto community. 

Blockchain investigator ZachXBT highlighted Ledger’s history of data breaches, which previously exposed customer information and were linked to phishing attacks and targeted thefts.

Ledger has acknowledged past incidents, including a widely reported 2020 breach that leaked customer contact details. 

Although no private keys were compromised, the episode remains a sensitive point for a company whose core value proposition is security and trust.

Critics have also pointed to reported hardware issues with certain Ledger devices, including battery-related complaints, as further evidence that the company’s products are not without operational risks.

Monetisation changes add to investor questions

The renewed scrutiny comes as Ledger has announced changes to its revenue model, including plans to charge fees tied to “clear signing” features designed to help users better understand transaction details before approval.

While the company has positioned the move as an enhancement to user safety, some observers argue that the timing, ahead of a potential IPO, raises questions about value extraction from an existing customer base.

What markets will be watching

Ledger has not formally confirmed the IPO timeline. However, if the listing proceeds, public market investors are likely to scrutinise both the firm’s growth prospects and its historical security record.

Final Thoughts

• Ledger’s IPO plans underscore growing investor appetite for crypto infrastructure but also heighten scrutiny of its trust and security history.
• As more crypto firms pursue US listings, credibility and transparency are likely to play a larger role in public market valuations.