Ripple Out of the Woods Yet? Seems Like it is!
In a press release released on Monday, Ripple told the public that an out-of-court agreement has been signed between the company and R3 Corda, David Rutter’s blockchain consortium. The press release said:
“R3 HoldCo LLC, R3 LLC, Ripple Labs Inc. and XRP II, LLC announce that they have reached a settlement of all outstanding litigation between the parties. The terms of the agreement will remain confidential and both sides look forward to putting these disputes behind them.”
It was back in 2016 that Ripple and R3 had signed an agreement giving the company access to the blockchain consortium of some of the big names in the banking industry such as JP Morgan, and Goldman Sachs. Ripple had, in turn, enabled Rutter’s firm to buy 5 billion XRP at a price of 0.0085 USD whenever they wanted to before 2020. The agreement also entitled Rutter’s company to 15 percent of the revenue that Ripple would make in the banking partnerships it makes in the future.
Last year in July, however, R3 claimed that the blockchain technology startup had unilaterally ceased the contract on no legal grounds in an email which the company sent to Rutter. This was what led to the lawsuit.
Ripple didn’t hold back either and filed a counter lawsuit several months later saying R3 had entered the partnership in bad faith. The company claimed that Rutter’s company used the partnership for developing a product much similar to the company’s blockchain-based services, and also that the company was misled about to what extent JP Morgan and Goldman Sachs would participate.
Both Ripple and R3 currently target banks which need better and more efficient solutions to take their transaction speed up considerably. Using the blockchain technology, both have, to an extent, been able to increase the speed of transactions while reducing associated costs.
Recently, Chris Larsen, the co-founder of Ripple was found at the Crypto Finance Conference in California, where, in an interview with Cheddar, he discussed the future of payments. He talked about the future of cryptocurrencies by saying:
“Blockchain doesn’t quite capture what’s really going on here. We think what’s happening is really the creation of what we would call an Internet of Value. So we think that has a profound impact on how the world is going to work. Maybe it’s kind of the highest level—we almost see it as the completion of globalization, which is obviously not working for everybody right now. It’s getting a lot of blowback and I think it’s not because globalization is bad, it’s because it’s incomplete—some key thing is missing, and that key thing is interoperability of money. You have it with data, you have it with goods—shipping containers, and modern ports, but you don’t have it with money. Money is still stuck in the ’70s.”
He then talked about the competition that Ripple faces across the world:
“It’s good. I mean, it’s kind of gratifying to see that, you know, we’ve been doing this now, focusing on cross-border payments for enterprises for four years plus. It’s good to see people finally realizing yes, this is the area that’s going to have the highest impact[…]We’ve been at it for longer than anybody, and what matters here is what quarters you have, number of partners—we have hundreds of banks and payment providers[…]Not just in experimentation mode but full production mode.”
Among the other things in the interview, he discussed how great the US is for the FinTech industry and a lawsuit which was filed against the company—the one which brought the total up to three.