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Definition of corrugation
Ripple is a blockchain-based digital payments company that has created a network and protocol that it uses cryptocurrency XRP and the XRP ledger. Ripple’s primary focus is as an asset and remittance exchange system for settling payments, similar to the SWIFT system for international money and securities transfers used by banks and financial intermediaries dealing between different currencies.
Ripple products serve as a sort of temporary global settlement layer for businesses and individuals.
Key points
- Ripple is a blockchain-based digital payment network and protocol that uses the XRP Ledger and XRP blockchain.
- XRP makes money by providing cross-border payment services and crypto-liquidity to businesses.
- One of the first of its kind, Ripple operates in the blockchain and cryptocurrency financial services industry.
- In 2024, Ripple announced its new institutional decentralized finance solutions designed to help centralized financial institutions access decentralized financial platforms and achieve regulatory compliance. It also plans to release a stablecoin backed by US dollars.
The Ripple industry
Ripple operates in the financial technology sector, providing blockchain and cryptocurrency cross-border payment services, crypto liquidity, and central bank digital currency services. Its platforms use XRP Ledger and its native token, XRPin its services.
Ripple is unique in this space as it has created the first financial services platform and network that accesses and uses blockchain and cryptocurrency for businesses. It has developed products that provide liquidity and use cryptocurrency and a bridge currency to speed up international transactions and reduce costs.
Additionally, Ripple has helped countries create their own central bank digital currencies (CBDCs) through its Ripple CBDC platform.
Ripple fundraising and financial data
Since 2012, Ripple has held 14 fundraising rounds, raising a total of $293.8 million. More recent backers include Uday Kumar Bangalore Shivaraman, The K Fund and Azure Ventures Group.
The company’s most recent valuation was more than $11 billion, including a rumored $285 million share repurchase in 2024.
History and leadership
Ripple was founded in 2012 by Chris Larsen, David Schwartz, Author Britto and Jed McCaleb after work began on the XRP Ledger. Its original name was OpenCoin, but it went through a series of name changes until it finally became Ripple.
Founders:
- Chris Larsen: Has a long history of success in the field of financial technology.
- David Schwartz: A multidisciplinary engineer with long experience in developing software solutions.
- Jed McCaleb: Has been involved in software and cryptocurrency development since the early 2000s.
- Author Britto: A software engineer with a long history of programming.
The current leadership of Ripple is:
- CEO: Brad Garlinghouse
- Technical director: David Schwartz
- President: Monica Long
- Head of the financial office: Jon Bilic
Recent developments
Ripple has expanded its capabilities by acquiring companies involved in cryptocurrency and the technology that integrates it. In 2024 and 2023, it acquired Standard Custody & Trust, Metaco, cryptocurrency custody providers. These acquisitions will likely help Ripple with its plans to offer crypto liquidity services to institutions as well as institutional decentralized finance solutions.
In 2020, Ripple is being sued by the Securities and Exchange Commission. The Commission alleged that the company had sold unregistered securities in its fundraising activities.
In 2023, Judge Analisa Torres ruled that XRP was not a security when sold on an exchange, but was when sold to institutional investors. The SEC dropped all charges against Chris Larsen and Brad Garlinghouse, but continued to insist on fining Ripple nearly $2 billion, which Ripple disputed.
Has Ripple won the case?
Ripple has achieved some victories in its defense against the Securities and Exchange Commission, but has lost regarding the treatment of XRP sales to institutional customers.
Why is Ripple banned in the US?
Ripple is not banned in the USA. It is a company that provides blockchain and cryptocurrency services to institutional clients. To avoid selling XRP to institutional clients, Ripple uses XRP in its services outside the United States but not within it.
What happens to my XRP if Ripple loses the lawsuit?
Ripple did not lose its case against the SEC, but could face fines. Since your XRP is not owned or controlled by Ripple, it will still exist, but its market value may vary depending on the fines decision.
The bottom line
Ripple is a blockchain technology and services company that provides financial services to businesses around the world. It was started by the same developers who created XRP and XRP Ledger, but does not own the blockchain or develop it.
Ripple is the first company to incorporate blockchain and cryptocurrency into a global corporate financial network. It’s operating in a new industry, so there have been a lot of hiccups, such as regulatory issues and lawsuits.
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