Ripple, the pioneering payment network, has been making waves in the cryptocurrency space—especially after its native asset, XRP, surged in late 2017, briefly becoming the second-largest cryptocurrency by market cap.
At the Blockchain Connect Conference, Ripple CEO Brad Garlinghouse shared insights into the company’s vision, partnerships, and expansion strategy, including plans for China.
Ripple’s Vision: The Internet of Value
Solving Cross-Border Payment Challenges
Garlinghouse likened Ripple’s mission to building an "internet of value"—making money transfers as seamless as sending information online.
"In an era where we can stream video from satellites, it’s astonishing that moving money across borders still relies on outdated, slow systems. Ripple exists to change that."
Focus on Payments Over Hype
Unlike many blockchain projects chasing multiple use cases, Ripple remains laser-focused on cross-border payments. Its clients include banks and financial institutions like MoneyGram, leveraging blockchain for faster, cheaper transactions.
How Ripple’s Ecosystem Works
The Interledger Protocol (ILP) and XRP
Garlinghouse compared Ripple’s Interledger Protocol (ILP) to the internet’s TCP/IP—a foundational layer enabling interoperability between different payment networks.
- ILP Routers: Facilitate instant settlements between banks.
- XRP’s Role: Acts as a bridge currency to eliminate pre-funding requirements, freeing trillions in trapped capital.
👉 Learn how XRP boosts liquidity in global payments
Ripple’s Strategy in Asia
China: Collaboration Over Disruption
While Ripple has offices in Tokyo, Singapore, and Mumbai, China remains a key frontier. Garlinghouse emphasized:
"Entering China requires local partnerships—not bypassing regulators. We aim to work with the People’s Bank of China (PBOC), just as we collaborate with the Bank of England and Saudi Arabian Monetary Authority."
Why Governments Matter
Ripple’s approach contrasts with libertarian crypto narratives:
- Regulated Partnerships: Ensures compliance and scalability.
- Market Realities: Banks adopting blockchain (like Japan’s 61 Ripple clients) signal a tipping point.
Navigating the Crypto Boom
Staying Focused Amid Noise
Garlinghouse dismissed short-term hype, drawing parallels to AT&T’s initial skepticism about the internet:
"Banks saying ‘we’ll never use digital assets’ sound like AT&T claiming ‘the internet won’t make money’ in the 1990s. Customer demand will drive adoption."
2018 Goals: Solving Real Problems
Ripple’s success in Japan (with clients like Mitsubishi UFJ Financial Group) proved product-market fit. For 2018, priorities included:
- Expanding xCurrent (bank-to-bank settlements).
- Scaling XRP-based liquidity solutions.
FAQs
Q: Is Ripple only for banks?
A: No—its tech also benefits remittance firms like MoneyGram and could enable consumer apps.
Q: Why does XRP’s price volatility matter less for Ripple’s clients?
A: Banks use XRP for seconds-long transactions, minimizing exposure to price swings.
Q: How does Ripple differ from Bitcoin?
A: Bitcoin is decentralized money; Ripple is a regulated settlement layer optimized for institutions.
👉 Explore Ripple’s payment solutions for businesses
Final Thoughts
Garlinghouse’s key takeaway: Blockchain’s value lies in solving tangible inefficiencies. For Ripple, that means transforming cross-border payments—with or without hype.