R3 Corda payment layer now supports XRP
The addition suggests some demand from R3 users for XRP as a way to settle transactions.
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 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.
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.
- Why is BSV going wild for Craig Wright’s Bitcoin copyright?
- LEO now trading on Bitfinex with a sluggish start
- Brace for impact: Cryptocurrency industry faces heavy regulatory blow
- Blockstream unveils Liquid Securities: Security tokens for Bitcoin sidechains
- Bitcoin astounds by rising $1,000 overnight