Ripple Announces Strategic Partnership with Stellar Development Foundation (what if scenario)
The following press release moved over PR newswire in the cryptocurrency world on Thursday, April 9, 2020, at 9:32 a.m., PST.
San Francisco, Calif.–April 9, 2020–The board of directors of Ripple Labs, Inc., today announced that Jed McCaleb, the original cofounder of Ripple, have come to a partnership deal with the Stellar Development Foundation.
In 2014, McCaleb created The Stellar Development Foundation (SDF) a non-profit organization founded to support the development and growth of the open-source Stellar network. Stellar seeks to unlock the world’s economic potential by making money more fluid, markets more open, and people more empowered. The SDF helps maintain Stellar’s codebase, supports the technical and business communities around Stellar, and is a speaking partner to regulators and institutions. McCaleb is one of the early key figures in the crypto industry, he founded the infamous centralized exchange, Mt. Gox, the dominant Bitcoin exchange in the world at that time. After parting with Mt. Gox in May of 2011, McCaleb began work on a crypto network that wouldn’t be dependent on the energy-intensive mining process of Bitcoin. This network became Ripple. However, disagreements between McCaleb and the rest of the Ripple team led to McCaleb departing in early 2014, to go and start Stellar.
“Creating this partnership and reaching an agreement with Ripple makes a lot of sense for all parties involved. Stellar wants to work with unbanked individuals around the world while Ripple is focusing on building close partnerships with banks to help them move money globally,” said McCaleb from the San Francisco, Calif., headquarters of Ripple. “At first I dismissed the idea when the Ripple board contacted me. However, because I’m now the Chief Architect at the SDF I now am able to see how this partnership could benefit us both especially with new CEO and Executive Director Denelle Dixon at the helm.”
Ripple board member Craig Phillips describes the partnership process, “Basically, we challenged the SDF: ‘about 1.7 billion adults do not have a bank account. When you consider that the world has about 7.8 billion people, that’s about 1 in 5 people who do not have access to things like savings accounts, loans, and credit. Stellar wants to reach these people globally but they are having issues with banking on-ramps, Ripple has key banking relationships all over the world.’ When we presented it this way, Jed and team reacted positively to our pitch.”
“Who were we trying to kid?” asked Brad Garlinghouse. “Stellar allows users to convert their assets on the network easily, which is something that Ripple creating, executing would be difficult, timely and expensive to implement on protocol, as anyone who’s exchanged for foreign currencies can attest to. On the other hand, here at Ripple we also enable things like cheap and fast cross-border payments, Ripple’s number one target customer is not so much unbanked individuals but the banks themselves. Ripple and the SDF have real global adoption problems that can be resolved with this partnership.”
Chris Larsen, Executive Chairman of Ripple’s board of directors and former CEO and co-founder of Ripple, offered his support of the SDF, “Jed is more a 'founding father' of the industry. Stellar has become the preeminent blockchain for a decentralized exchange built into Stellar’s open ledger system. Stellar's DEX is highly unique in this regard. Our current Xpring Platform already provides developer tools, services, and programs to integrate money into most apps. Stellar lets you digitize value and then issue and redeem claims on it; the platform was designed for stablecoins before stablecoin was even a word. We believe the SDF can help assist and revitalize Ripple’s open network and provide us something for the next 5 to 10 years.”
Referring to the partnership with Ripple, CEO and Executive Director Denelle Dixon at the SDF said, “We see a tremendous opportunity to align both Ripple and the SDF into what we do with users who live in countries with unstable currencies. This would allow millions of unbanked individuals the ability to participate in the world economy." She went on to say, "HUNDREDS of TRILLIONS of dollars move across borders every year, so if Ripple can cut down or even eliminate the fees and wait times associated with those transactions for the unbanked and help assist with global on-ramps it would be a big win for both banks, unbanked individuals, Ripple and the SDF.”
The Ripple board just recently partnered with DeeMoney on March 18th to power faster, cheaper cross-border money transfers using RippleNet to process inbound payments into Thailand; namely between the prominent remittance corridors from South Korea, Indonesia, Singapore, Israel as well as the Middle East and Gulf regions. Currently, it is estimated that there are around a million Thais working globally who are transferring money back home. DeeMoney provides same-day settlement into all Thai bank accounts, making it an effective pay-out partner for international remittance companies with volumes into Thailand.
Ripple's intent is to fold Stellar's open, interoperable payment and currency system into future versions of Xpring and RippleNet in order to reach the millions of unbanked globally. In addition to this San Francisco based, Interstellar a business focused on growing the Stellar network ecosystem, will work closely with Ripple to build powerful new services for the SDF. Ripple will deliver these missing pieces of the puzzle to allow the Stellar network to achieve its full potential. That will solve the remaining banking on-ramp problems, turbocharging adoption and growth — making international payments better for millions and millions of companies and end users utilizing the Stellar ecosystem.
Headquartered in San Francisco, Calif., Ripple, Inc. is a technology company that provides the most efficient solutions to send money globally using the power of blockchain technology. The Ripple team has hundreds of employees with offices around the world. The Ripple vision is to enable the world to move value like information moves today—the Internet of Value. Ripple is the only enterprise blockchain company today with products in commercial use. Ripple's global payments network, RippleNet, includes over 300 financial institutions across 40 countries and six continents. Changing the financial system from within. Working with regulators, governments and central banks—not against them—to improve the way the world moves money.
Car Gonzalez’s crypto fantasies are his own and only sporadically reflect those of the mainstream Bitcoin, Crypto media. On a weekly basis, he features the best research, investigative reporting, industry analysis, insights, audio op-eds, and token analysis. You can find his newsletter consisting of highly in-depth, timely and crucial podcasts, giving you an informational edge over the entire bitcoin, crypto industry. Sign up for his free newsletter at thrillercrypto.substack.com He can also be reached at Car@thrillerx.com