R3 announced today that it will utilize the crypto/digital asset XRP as the first settlement mechanism in its new Corda Settler which is a universal settler application to facilitate global payments.
R3 is proud to announce the release of Corda Settler, an open source CorDapp that allows #Corda users to settle using any payment method. The first payment rail enabled for Corda Settler is the #XRP Ledger. Read the press release here – https://t.co/mxUIXPvG5R pic.twitter.com/NZgrA3BFDk
— R3 (@inside_r3) December 5, 2018
Here is a new video from R3 which shows the integration of XRP.
This adoption provides the following benefits to XRP.
- A second application/protocol that is able to settle with XRP, Ripple’ xRapid being the first.
- More decentralization for the XRP ledger and additional case that XRP is not a security.
- Potential reach of 200+ tech companies and financial institutions via R3’s existing clients
- Programmable settlements with XRP (Corda smart contracts)
Ripple and R3 have been working together since 2016 where they partnered to have 12 banks to trial XRP for cross-border payments. The R3 member banks that were involved in the trial included Barclays, BMO Financial Group, CIBC, Intesa Sanpaolo, Macquarie Group, National Australia Bank (NAB), Natixis, Nordea, Royal Bank of Canada (RBC), Santander, Scotiabank, and Westpac Banking Corporation.
However, R3 sued Ripple in September 2017, alleging that Ripple had violated a stipulation in the partnership agreement that gave R3 the right to purchase up to 5 billion XRP tokens at $0.0085 per unit through the end of 2019. In September 2018, Ripple and R3 reached an undisclosed settlement on “all outstanding litigation,” putting an end to a legal spat involving a tranche of cryptocurrency tokens once worth as much as $19 billion.
With the settlement taken care of R3 is free to move forward and utilize XRP. We expect to see more big news on XRP usage soon as Ripple’s CEO Brad Garlinghouse stated one major bank will use xRapid this year and dozens next near.