R3 Corda payment layer now supports XRP

Posted: 6 December 2018 5:21 pm
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The addition suggests some demand from R3 users for XRP as a way to settle transactions.

R3 has added support for XRP to its Corda ledger.

This is an interesting development, given the friction between R3 and Ripple, and the lawsuit settled just a couple of months ago. Both are more or less cooperating and competing in the same market – blockchain payment solutions for banks. This, coupled with the lawsuit, might make you expect that R3 would be a little more averse to adding XRP support.

This might be good news for XRP because it suggests that there's enough demand for XRP among potential Corda users to justify its inclusion. It might point at significant actual uptake of Ripple's XRP solutions among banks.

The gossip

The friction between Ripple and R3 allegedly occurred when the very Silicon Valley Ripple approached the very Wall Street R3, seeking an introduction to all the cool financial institutions that R3 was hanging out with.

Ripple was willing to pay handsomely for these introductions, in the form of an agreement to sell R3 5 billion XRP at less than a cent each.

juicy crypto words

The deal was done, but once Ripple went into the club house, it found that some of those cool financial institutions were planning on leaving the club soon. As a result, it accused R3 of deliberately omitting that important information during the deal. Furthermore, it also accused R3 of feigning cooperativeness just so it could copy Ripple's homework, with the aim of developing its own competing payment system.

They started arguing, both said to each other something like "my lawyer can beat up your lawyer," and one thing led to another which led to a settlement of some kind – the terms of which were not made public.

With this background, R3 Corda's support for XRP is piquing some curiosity.

"The deployment of the Corda Settler and its support for XRP as the first settlement mechanism is an important step in showing how the powerful ecosystems cultivated by two of the world’s most influential crypto and blockchain communities can work together," said Richard Gendal Brown, CTO at R3. "While the Settler will be open to all forms of crypto and traditional assets, this demonstration with XRP is the next logical step in showing how widespread acceptance and use of digital assets to transfer value and make payments can be achieved."

Functionally, the integration of XRP as an option means that when conducting business on the Corda ledger, one party now has the option to request settlement using XRP. Once the other party makes the payment, and an oracle duly notes it, the transaction can be treated as settled.

R3 presumably wouldn't have added XRP support if its intended users, at some of the world's largest banks and financial institutions, didn't actively want it and plan on using it.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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