SMQKE, a respected researcher and figure in the XRP community, has reignited debates over the extent of R3’s use of XRP in its Corda Settler platform. Through a series of presentations, SMQKE has provided evidence, including videos and documents, that suggests XRP was indeed integral to the platform’s early days. However, recent information indicates that the partnership between R3 and XRP may have evolved, leaving many to question the current status of XRP’s involvement in Corda Settler. This article delves into the historical and recent developments of this collaboration, shedding light on the facts and the shifting dynamics.
Demo Videos: R3’s Early Adoption of XRP for Corda Settler
To support his claims, SMQKE shared two demo videos from December 2018, shortly after R3 unveiled the Corda Settler platform. In these videos, R3 demonstrated how Corda Settler utilised XRP for cross-border payments.
The first demo showcased two companies, Party A and Party B, engaging in a payment transaction. Party A requested payment in XRP, and the platform fetched a real-time exchange rate, updated the obligation, and generated an XRP address. Once Party B sent the payment, the transaction was confirmed by the oracle, which verified the transfer on the XRP Ledger, thus completing the settlement.
The second video offered a technical walkthrough, explaining the setup of the transaction process. R3 used four Corda nodes, including Party A, Party B, a notary cluster, and an oracle. This configuration demonstrated how Corda Settler leveraged both FX rate oracles and XRP settlement oracles, enabling the system to convert obligations from USD to XRP using live rates. After Party A provided XRP settlement instructions, Party B executed the payment, and the oracle verified it by checking the XRP transaction hash.
Documents and Reports Backing XRP’s Role in Corda Settler
In addition to the videos, SMQKE cited multiple documents to reinforce the idea that XRP was a crucial part of Corda Settler. One such document was a March 2021 report from Credit Suisse, which explicitly stated that Corda Settler supported XRP as a settlement mechanism. The report further highlighted R3’s collaboration with SWIFT’s global payments innovation (gpi) initiative, which showcased the potential of XRP in traditional finance systems.
Another document referenced by SMQKE was a February 2019 article by Carlo de Meijer on the TreasuryXL platform. The article emphasised that R3 had chosen XRP as the primary settlement mechanism for Corda Settler. R3 co-founder Todd McDonald was quoted, stating that XRP’s integration showcased the possibility of interoperability between different blockchain networks. However, McDonald also clarified that the platform was open to integrating various payment systems, signalling that XRP was only one of the many options available for the platform.
GitHub Evidence: XRP’s Early Integration in Corda Settler’s Codebase
Further support for XRP’s early role in Corda Settler came from GitHub. SMQKE discovered a December 2018 update to the Corda Settler codebase, which confirmed that XRP was the first, and at that time, the only settlement asset for off-ledger transactions.
Interestingly, the readme file of the repository mentioned that Corda Settler could support any payment rail that provided cryptographic proof of payment. This statement suggested that while XRP was initially integrated, the platform was designed to be adaptable and could support other digital currencies or traditional assets in the future.
SMQKE also referenced The Power of Micro Money Transfers, a book that outlined the functionalities of Corda Settler. The author noted that XRP was the first digital currency integrated into the platform, which reinforced the idea that R3 viewed XRP as an essential part of its early strategy for cross-border payments.
A Shift in Direction: The Emergence of XDC and the Evolving Corda Settler
Despite the solid evidence that XRP was once integral to Corda Settler, the landscape began to shift by mid-2019. R3 executives, in interviews, clarified that XRP was initially integrated as an example of what the platform could do. The executives emphasised that Corda Settler was designed to support multiple assets and payment systems, tailored to client preferences. Therefore, XRP was never considered a permanent fixture of the platform.
This shift gained momentum in 2021 when R3 began working closely with the XDC Network. That year, R3 integrated XDC as the default settlement token for its Decentralised Digital Asset Shared Ledger (DASL) Bridge, a platform for trade finance applications. XDC, with its strong focus on enterprise clients in the trade and supply chain finance sectors, seemed to better align with R3’s vision for Corda Settler.
By 2023, the absence of XRP support in Corda Settler became apparent. No significant updates were made to the Corda SDK regarding XRP integration, and blockchain analysts noted a clear lack of XRP transactions involving Corda Settler. This led many to conclude that R3 had effectively deprecated XRP support.
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Conclusion: The Evolving Relationship Between R3 and XRP
The evidence shared by SMQKE paints a clear picture of R3’s early enthusiasm for XRP as the settlement asset for its Corda Settler platform. The videos, reports, and codebase updates from 2018 and 2019 suggest that XRP played a significant role in the platform’s early functionality. However, as R3 expanded its reach and shifted its focus towards enterprise solutions, it became evident that XRP was no longer the sole asset supported by Corda Settler.
With the introduction of XDC and the gradual phase-out of XRP support, it seems that R3’s partnership with Ripple has taken a backseat, at least in the context of Corda Settler. While XRP’s role in the platform’s early days is undeniable, the future of Corda Settler now appears to be aligned with other assets more tailored to R3’s client base, such as XDC.
