Difference between revisions of "Ripple"

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{{Infobox_Company  <!-- Feel free to remove comments like this when you add real info -->
{{Infobox_Company  <!-- Feel free to remove comments like this when you add real info -->
| company_name = Ripple
| company_name = Ripple

Revision as of 15:09, 30 May 2019

Ripple logo.jpg
Founded 2012
Headquarters San Francisco, CA
Key People Brad Garlinghouse, CEO; Chris Larsen, Executive Chairman and Co-Founder; Jed McCaleb, Co-Founder, former member of Ripple's board of directors; Amir Sarhangi, Vice President of Products
Employees 250-500
Products XRP
Twitter @ripple
LinkedIn Profile
Facebook ripplepay
Website Ripple.com

Ripple is a company that makes a cryptocurrency known by the same name, using the ticker symbol XRP. It is an open payment network meant to settle cross-border payments between banks.[1]


Ripple was founded by Jed McCaleb and Chris Larsen in 2012. Larsen was a co-founder of the digital financing company E-LOAN Inc. and is currently one of the richest people in the world.[2][3][4] McCaleb is the creator of the now-defunct bitcoin exchange Mt. Gox.[5][6] He later founded Stellar in 2014.[7][8]

Brad Garlinghouse is the current CEO of Ripple. He moved into this position in 2016 when Chris Larsen stepped down from the role.[9][10] Garlinghouse joined Ripple in late 2016. He was personally appointed by Larsen, who then transitioned to serving as executive chairman of Ripple's board of directors.[11]

Ripple's protocol was built upon co-founder Larsen's E-Loan, which was founded in 2004.[12] In 2011, Jed McCaleb began working on the Ripple protocol. The company was officially founded in 2012 by McCaleb and Larsen through OpenCoin, another company started by McCaleb and Larsen.[13][14]

Unlike many companies responsible for the creation of decentralized digital assets and decentralized payment systems, Ripple representatives have long said that Ripple's goal is to work with banks, rather than eschew them, in order to create the means for currency to move more freely in international markets.[15]

According to Ripple's website, the company was founded to provide cryptocurrency and blockchain-based fintech solutions to challenges within the traditional financial system, to enable "the world to move value like it moves information today."[16] At the "Unbound London 2018" smart money and blockchain conference, Ripple's global payments specialist Cassie Craddock told audience members that Ripple's long-term goal is to provide its users with the ability to make payments across international borders in 3-5 seconds.[17]

In October 2018, Ripple announced that Amir Sarhangi, former director of product management and partnerships for Google's messaging service, had joined Ripple as its vice president of products. Sarhangi joined the company to help develop RippleNet.[18]

In February 2019, a spokesperson on behalf of Ripple said that the company had removed the role of chief market strategist from their company. Cory Johnson, the former Bloomberg TV anchor who previously occupied the role, left the company. The Ripple spokesperson said that Johnson's role at Ripple was primarily to develop the company's internal strategy and help educate the industry about the differences between Ripple and XRP - in that, they said, Johnson's time with Ripple was fruitful.[19]


RippleNet, Ripple's blockchain-based financial network, includes over one hundred banks, corporations and financial institutions globally. These include Banco Santander, Zip Remit, the National Bank of Kuwait (NBK), Cuallix, the Bank of England, Barclays, and Bank of Montreal (BMO). It should be noted that this does not necessarily reflect adoption of xCurrent and/or xRapid by these organizations, only their membership with the network. This can indicate a wide range of utilization of Ripple's technology, from testing its capabilities in closed pilot programs to full adoption...though Zip Remit and Cuallix are currently the only RippleNet members that have begun using both xCurrent and xRapid for their businesses.[20][21][22][23][24][25]

In September 2018, Ripple announced that the National Commercial Bank (NCB) in the Kingdom of Saudi Arabia had joined RippleNet. The bank announced that this partnership would be part of an ongoing attempt to experiment with digital currency trading and regulation, including the eventual issuance of a digital currency for improving cross-border transactions between Saudi Arabia and the United Arab Emirates. The NCB plans to use Ripple's platform to make similar cross-border payments with banks all over the world.[26][27][28] Later that month, PNC Bank, the 9th largest bank in the U.S. by assets, announced that they had joined RippleNet.[29] Days after the news, XRP's market cap overtook that of Ethereum, making it the largest digital currency in the world by market cap; its price also increased more than 50 percent in a matter of hours.[30][31]

Ripple contracted the Washington, D.C.-based lobbying firm Klein/Johnson under the Securing America’s Internet of Value Coalition. Klein/Johnson agreed to lobby the United States of America's Congress, the IRS, the SEC, and other, similar organizations currently involved in building regulatory frameworks in the blockchain space. The firm also agreed to be paid, in part, in XRP - the announcement specified the firm would receive a monthly fee of $25,000 in USD, as well as 10,000 XRP.[32][33]

Legal battles

Jed McCaleb

In 2014, Jed McCaleb left his position at Ripple, though he maintained a seat on its board of directors for a short time. In 2015, Ripple became involved in a legal battle with McCaleb, which also involved his new company Stellar, as well as the London-based cryptocurrency exchange Bitstamp. The dispute began when McCaleb and two of his family members attempted to sell a certain amount of XRP on Bitstamp, which Ripple claimed violated a legal agreement between Ripple and McCaleb. Bitstamp froze the XRP in response, claiming they couldn't confirm the true owners of the cryptocurrency involved in the transactions. The lawsuit was settled in 2016. As part of the agreement, McCaleb received the full amount of the funds that were originally frozen, and Ripple had to pay Bitstamp's legal fees.[34][35]


In June 2017, Brad Garlinghouse attempted to terminate a contract Ripple had made with crypto consortium R3 via email to R3's chief executive David Rutter. The agreement gave R3 the right to purchase up to 5 billion XRP digital tokens at $0.0085 until September 2019. R3 responded by filing a lawsuit against Ripple, which then filed its own lawsuit against R3, claiming R3 had violated the contract by failing to help Ripple promote its technology.[36] Ripple's attempts to keep the lawsuit in San Francisco courts were denied. R3 appealed to courts in Delaware and Manhattan, New York; the case was thrown out in Delaware.[37]

In September, Ripple announced that it had reached a settlement of "all outstanding litigation" with R3, ending the year-long legal battle.[38][39]

Products and Services


xCurrent is a platform designed to allow banks to communicate openly during the process of making payments between each other, especially when those banks lie across international borders, at lower cost than traditional systems. It is a software program that uses Ripple's blockchain-based system, Interledger. It does not directly utilize XRP. It includes four components:[40][41][42][43]

Messenger: Messenger is a function that is used to transfer KYC, risk information, fee rates, financial exchange rates, and other data crucial for completing a transaction between banks. It also provides IDs for specific payments, allowing both banks participating in a transaction to query the transaction at any time.

Validator: Validator is a function which, using cryptographic hash functions, confirms the success or failure of a payment.

ILP Ledger: This component of xCurrent settles payments. While not exactly a distributed ledger itself, it uses Interledger uses a software protocol (similar to a smart contract) called ILP Ledger - a subledger - to bridge the gaps between different payment systems used by banks around the world. It also tracks information such as debits, credits, and liquidity between parties engaging in a transaction.

FX Ticker: The component of xCurrent that provides the exchange rate between two pairs of ledgers (ex: if the two banks engaging in a money transfer are U.S. and British banks respectively, then FX Ticker will display the exchange rate between the U.S. dollar and the British pound). FX Ticker also keeps track of the account, currency, and authentication credentials for every account on the ILP Ledger. It also coordinates money transfers on ILP Ledgers, ensures the validity of exchange quotes, and transfers the specified payment amount in a transaction to the ILP Ledger of the payee.


xRapid is the function of Ripple that exchanges one currency for an equivalent amount of another. Unlike xCurrent, xRapid uses XRP as an intermediary currency when transferring funds. For example: if someone in the U.S. wants to pay someone in the U.K. in pounds, they can use xRapid to send USD to the party in the U.K. by buying a certain amount of XRP - this amount is determined by the value of XRP at the time of the transaction, and the exchange rates of both USD and the British pound. The XRP that the U.S. party purchased is then used to purchase an equivalent amount of pounds, which are then transferred to the U.K. party's account. This can occur within seconds, and does not require intermediaries to facilitate the transaction.[44]


xVia is a product designed to enable corporate Enterprise Resource Planning software (or ERPs), which manage and automate several integral functions of a business, to link up with Ripple's decentralized network. This allows companies who use such software to directly connect their automated processes to banks connected by Ripple.[45][46]

Key People


  1. 10 things you need to know about Ripple. Coindesk.
  2. About Us. E-LOAN.
  3. Ripple Roars Past $3 to Become Second Most Valuable Digital Currency. Fortune.
  4. Meet The Crypto Billionaires Getting Rich From Ripple's XRP. Forbes.
  5. 10 things you need to know about Ripple. Coindesk.
  6. Meet The Crypto Billionaires Getting Rich From Ripple's XRP. Forbes.
  7. Jed McCaleb. Linkedin.
  8. Co-Founder Of Ripple, Stellar: Blockchain Needs To Be Decentralized To Be Successful. Cointelegraph.
  9. Leadership. Ripple.
  10. Fintech Startup Ripple Just Named a New CEO. Fortune.
  11. Amid High Growth, Ripple’s Chris Larsen Appoints Brad Garlinghouse Chief Executive Officer. Ripple.
  12. What Is Ripple and Why Is It Beating Both Bitcoin and Litecoin?. Fortune.
  13. Jed McCaleb. Linkedin.
  15. Ripple CEO Brad Garlinghouse: 'There's a lot of FUD about XRP'. Yahoo Finance.
  16. Our Company. Ripple.
  17. Ripple Says Master Plan Is to Give Everyone on Earth the Power to Send Payments in 3 to 5 Seconds. Daily HODL.
  18. Blockchain startup hires away Google's messaging tech leader. Reuters.
  19. Ripple, the firm behind cryptocurrency XRP, eliminates Cory Johnson’s role at the firm. The Block.
  20. 10 things you need to know about Ripple. Coindesk.
  21. Zip Remit Officially Using Ripple XRP. CryptoDaily.
  22. Kuwait Bank Adopts Ripple for Instant Cross-Border Payments. CCN.
  23. Cuallix Uses Ripple for Cross-border Payments from the US to Mexico. Finance Magnates.
  24. Bank of England to Open New Payment System to Blockchain Users. CCN.
  25. Bank of Montreal Expands Crypto Purchase Ban. Coindesk.
  26. Ripple partners with National Commercial Bank in Saudi Arabia with over 5.4 million customers. AMB Crypto.
  27. National Commercial Bank of Saudi Arabia Joins RippleNet. Ripple.
  28. Saudi Arabia's central bank signs blockchain deal with Ripple. Reuters.
  29. Top Ten US Bank Joins Ripple Blockchain RippleNet for Cross-Border Payments. CCN.
  30. Cryptocurrencies Jump as Ripple Optimism Lifts Battered Market. Bloomberg.
  31. Its Official. XRP Edges Out ETH From The Number 2 Spot. Is Bitcoin Next?. Ethereum World News.
  32. Cryptocurrency Coalition to Pay D.C. Lobbyists in Digital Coins. Bloomberg.
  33. Ripple-Hired Lobbying Firm Will Get Paid [Partially in Cryptocurrency]. CCN.
  34. Stellar Enters Legal Dispute With Bitstamp, Ripple and Jed McCaleb. Coindesk.
  35. $1 Million Legal Fight Ensnares Ripple, Bitstamp and Jed McCaleb. Coindesk.
  36. U.S. blockchain startups R3 and Ripple in legal battle. Reuters.
  37. Ripple Loses Bid to Keep Its Cryptocurrency Fight in California. Bloomberg.
  38. Ripple Loses Bid to Keep Its Cryptocurrency Fight in California. CCN.
  39. Ripple Labs and R3 Consortium Reach Settlement in XRP Token Litigation. Cointelegraph.
  40. Ripple Loses Bid to Keep Its Cryptocurrency Fight in California. Bitcoin Magazine.
  41. One frictionless experience to send money globally. Ripple.
  42. How Ripple Works - xCurrent. Ripple.
  43. Understanding Hyperledger, Interledger, and their Role in Future International Payments Systems. American Express.
  44. Source Liquidity: xRapid. Ripple.
  45. XVia From Ripple (XRP): A Bridge Between RippleNet And ERPs (SAP And Oracle). Ethereum World News.
  46. xVia Opens New Doors in Emerging Markets. Ripple.