Ripple Labs

Ripple Labs, Inc. is an American technology company which develops the Ripple payment protocol and exchange network. Originally named Opencoin and renamed Ripple Labs in 2015, the company was founded in 2012 and is based in San Francisco, California.[1]

Ripple Labs, Inc.
IndustryComputer software
FoundersChris Larsen, Jed McCaleb
Area served
Key people
Ryan Fugger (Concept Originator)
Alan Safahi (Advisory Board)
David Schwartz (Chief Cryptographer and Chief Technology Officer)
Ken Kurson (Advisory Board)
Brad Garlinghouse (Chief Executive Officer)
ProductsRipple Payment and Exchange Network
Number of employees
150 (2016)[2]


Ryan Fugger conceived Ripple in 2004 after working on a local exchange trading system in Vancouver. The intent was to create a monetary system that was decentralized and could effectively empower individuals and communities to create their own money. Fugger later built the first iteration of this system, Concurrently, in May 2011, Jed McCaleb began developing a digital currency system in which transactions were verified by consensus among members of the network, rather than by the mining process used by Bitcoin. In August 2012, Jed McCaleb hired Chris Larsen and they approached Ryan Fugger with their digital currency idea. After discussions with McCaleb and long-standing members of the Ripple community, Fugger handed over the reins. In September 2012, Chris Larsen and Jed McCaleb co-founded the corporation OpenCoin.[3]

OpenCoin began development of the ripple protocol (RTXP) and the Ripple payment and exchange network. On April 11, 2013, OpenCoin announced it had closed an angel round of funding with several venture capital firms. That same month, OpenCoin acquired SimpleHoney to help it popularize virtual currencies and make them easier for average users.[4] On May 14, 2013, OpenCoin announced that it had closed a second round of angel funding.[5] In July 2013, Jed McCaleb separated from active employment with Ripple.[6]

On September 26, 2013, OpenCoin officially changed its name to Ripple Labs, Inc.[1] Their CTO, Stefan Thomas, further announced that the source code for the peer-to-peer node behind the Ripple payment network was officially open source. Parts of Ripple, particularly a JavaScript-based web client, had been open source months before, but the release of the peer-to-peer "full node" Rippled meant that the community now had the required tools needed to maintain the Ripple network on its own.[7]

On May 5, 2015, Ripple received a US$700,000 (equivalent to $739,899 in 2018) civil money penalty from U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) for “willful violation of the Bank Secrecy Act by acting as a money services business without registering with FinCEN.”[8][9]

On October 6, 2015, the company was rebranded from Ripple Labs to Ripple.[10]

On June 13, 2016, Ripple obtained a virtual currency license from the New York State Department of Financial Services, making it the fourth company with a BitLicense.[11]

In September 2016, Ripple announced that it had raised $55 mln in funding. Accenture Ventures, SCB Digital Ventures, the venture arm of Siam Commercial Bank and Santander Innoventures are just a few of the investors who participated in the Series B funding.[12]

On September 23, 2016, Ripple announced that they have struck an accord, a first of its kind, with several major banking interests to created the GPSG, or the Global Payments Steering Group. The banking interests involved in the founding of this new venture are a virtual who’s-who, including Bank of America/Merrill Lynch, Santander, UniCredit, Standard Chartered, Westpac Banking Corporation, and Royal Bank of Canada.[13]

In April 2017, Ripple announced that multi-billion dollar banks including the $60 bln Spanish banking giant BBVA joined the Ripple network to solve speed, scalability and cost of global transactions.[14]

In September 2017, R3 has sued Ripple for specific performance of an option agreement in which Ripple agreed to sell up to five bln XRPs for a price of $.0085. Ripple has countersued, claiming that R3 reneged on a number of contractual promises, and is simply acting in a spirit of opportunism, after the cryptocurrency soared more than 30 times over.[15] Delaware judge ruled in favor of Ripple but the case will continue in California and New York.[16]

In November 2017, American Express (AMEX) and Ripple partnered to create a Blockchain-based payment infrastructure. Per the announcement, the platform is already being used. The specific application is for Business to Business (B2B) payments between US corporate customers and UK based customers banking with Santander UK. The service will provide real-time trackable payments between customers.[17]

Ripple has been adding numerous new companies to its customer base in 2017, bringing to a total of more than 100.

On January 11, 2018, Ripple confirmed that MoneyGram would integrate Ripple’s XRP altcoin into its payment system.[18]

In March 2018, a Japanese bank consortium led by SBI Ripple Asia, comprising 61 banks launched "MoneyTap", a Ripple-powered mobile app to provide on-demand domestic payments in Japan.[19]

In May 2018, Spanish Banking group Santander released One Pay FX — the first mobile application for international payments powered by blockchain technology, that uses Ripple's xCurrent technology.[20]

Following the creation of a Mumbai office, Ripple has been adding multiple Indian customers in 2018, including leading banks such as Kotak Mahindra Bank, Axis Bank, and IndusInd, that announced that they started using Ripple's products.[21]

Ripple also stated their intention of entering into China market in 2018.[22]


Ripple is a privately funded company. It has closed five rounds of funding, which included two rounds of angel funding, one round of seed funding, one Series A round and one Series B round.[4][23][24][25][26][2]

Date Funding
Investor Amount
(million $)
April 2013 Angel Andreessen Horowitz, FF Angel LLC, Lightspeed Venture Partners, Pantera Capital, Vast Ventures, Bitcoin Opportunity Fund 2.5
May 2013 Angel Google Ventures, IDG Capital Partners 3.0
November 2013 Seed Core Innovation Capital, Venture51, Camp One Ventures, IDG Capital Partners 3.5
May 2015 Series A IDG Capital Partners, Seagate Technology, AME Cloud Ventures, ChinaRock Capital Management, China Growth Capital, Wicklow Capital, Bitcoin Opportunity Corp, Core Innovation Capital, Route 66 Ventures, RRE Ventures, Vast Ventures, Venture 51 28
October 2015 Series A Santander InnoVentures 4
September 2016 Series B Standard Chartered, Accenture, SCB Digital Ventures, SBI Holdings, Santander InnoVentures, CME Group, Seagate Technology 55

Ripple's revenue sources include professional services provided to financial network operators being integrated with Ripple, software built to integrate legacy financial systems with Ripple and the native currency (XRP). Ripple is also backed by several established investors that provide an additional layer of financial stability.[27]

Programs and projects

Charitable contributions

Of the XRP 80 billion that Ripple Labs was gifted, Ripple follows a distribution strategy that encompasses payments to business partners such as gateways, market makers and charitable organizations.[28]

Ripple Labs began working with the World Community Grid in November 2013. The World Community Grid pools surplus processing power from volunteers’ computers and electronic devices to support humanitarian causes such as fighting AIDS, improving solar energy and defeating cancer. Individuals who join the Ripple Labs team and donate their spare processing power are rewarded with XRP. As of March 18, 2014, Ripple Labs has given away XRP134,528,800 through the World Community Grid at a rate of XRP1,250,000 per day.[29][30][31]

In 2018, Ripple has done multiple donations. The company has donated $29 million of its cryptocurrency to USA public schools,[32] and $4 million to The Ellen DeGeneres Wildlife Fund [33]

Partnerships and initiatives

In March 2014, CrossCoin Ventures launched an accelerator which funds companies that work to advance the Ripple ecosystem. The firm funds accepted startups with up to US$50,000 (equivalent to $52,917 in 2018) in XRP, Ripple's native currency, in exchange for a 3% to 6% stake in diluted common stock. Mentorship and support is provided by CrossCoin and Ripple Labs, Inc.[34]

Ripple also developed early partnerships with companies such as ZipZap,[35] with the relationship called a threat to Western Union in the press.[36]

In cooperation with other industry leaders, Ripple Labs became a co-founding member of the Digital Asset Transfer Authority (DATA) in July 2013. DATA provides best practices and technical standards, including anti-money laundering compliance guidance for companies that work with digital currency and other emerging payments systems. The committee works as a liaison among public officials, businesses and consumers and create common rules to protect consumers. The initiative attempts to create a cohesive voice of Bitcoin community members when interacting with regulators.[37][38]

In June 2018, Ripple has committed over $50 million in funding to create the University Blockchain Research Initiative, which aims at support research to:

  • Collaborate on research and technical development that will stimulate widespread understanding and innovation in blockchain.
  • Create new curriculum to meet high student demand for learning about blockchain, cryptocurrency and other FinTech topics.
  • Stimulate ideas and dialog among students, faculty, technologists and business leaders on topics of shared interest.[39]

In May 2018, Ripple has announced xpring, "an initiative by Ripple that will invest in, incubate, acquire and provide grants to companies and projects that [...] will use the digital asset XRP and the XRP Ledger, the open-sourced, decentralized technology behind XRP, to solve their customers’ problems.".[40]

Awards and recognitions

For its creation and development of the ripple protocol (RTXP) and the Ripple payment/exchange network, the magazine MIT Technology Review recognized Ripple Labs as one of 2014s 50 Smartest Companies in its February 2014 issue. The criteria for the recognition revolved around "whether a company had made strides in the past year that will define its field."[41]

On February 9, 2014, Ripple Labs was named as a finalist for a 2014 PYMNTS Innovator Award in two separate categories: Best New Technology as well as Most Disruptive Company. The recognition pertains to Ripple Labs work in creating Ripple, an open-source, distributed payment protocol powering a new global value web.[42]

On January 12, 2016, Ripple was listed by UK-based company Richtopia at No. 8 in the list of 100 Most Influential Blockchain Organisations.[43][44]

Other Awards:

  • February 2015 - Fast Company. The World's Top 10 Most Innovative Companies Of 2015 In Money.[45]
  • February 2015 - American Banker. 20 Fintech Companies to Watch.[46]
  • August 2015 - Ripple Labs Awarded as Technology Pioneer by World Economic Forum.[47]
  • December 2015 - Forbes. Fintech 50.[48]
  • December 2015 - H2 Ventures, KPMG. Fintech 100.[49]
  • March 2016 - PYMNTS Innovation Project 2016. Best B2B Innovation Award.[50]
  • June 2016 - Fortune. 5 Hottest Companies in Fintech.[51]


On May 5, 2015, FinCEN fined Ripple Labs and XRP II US$700,000 for violation of the Bank Secrecy Act,[52] based on the Financial Crimes Enforcement Network's anti-money laundering (AML) additions to the act in 2013.[53] Ripple Labs agreed to remedial steps to ensure future compliance, which included an agreement to only transact XRP and "Ripple Trade" activity through registered money services businesses (MSB), among other agreements such as enhancing the Ripple Protocol.[52] The enhancement won't change the protocol itself, but will instead add AML transaction monitoring to the network and improve transaction analysis.[53]


  1. ^ a b c "Company Overview of Ripple Labs Inc". BusinessWeek. Retrieved 18 March 2014.
  2. ^ a b "Big Banks Invest $55 Million in Blockchain Startup Ripple's Series B". Coindesk. 15 September 2016. Retrieved 28 September 2016.
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  4. ^ a b Rip, Empson (11 April 2013). "Now Backed By Andreessen & More, OpenCoin Looks To Build A Better Bitcoin — And A Universal Payment Ecosystem". TechCrunch. Retrieved 17 March 2014.
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  6. ^ Southurst, John. "Ripple Creator Donates $500,000 XRP to Artificial Intelligence Research Charity". CoinDesk. Retrieved 19 March 2014.
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  10. ^ Liu, Alec (6 October 2015). "A New Chapter for Ripple". Ripple. Retrieved 2015-10-22.
  11. ^ "Ripple receives BitLicense". Retrieved June 20, 2016.
  12. ^ "US Blockchain Company Ripple Raises $55 Mln, Investors Include Major Banks". Cointelegraph. 16 September 2016.
  13. ^ "SWIFT 2.0? Ripple Signs Major Banks to Blockchain Payments Deal". Cointelegraph. 23 September 2017.
  14. ^ "Ethereum Price Hits New All-Time High, Ripple Surges Amid New Partnerships". Cointelegraph. 28 April 2017.
  15. ^ "7 Global Banks Partner Up to Develop Blockchain-based Syndicated Loan Market". Cointelegraph. 7 October 2017.
  16. ^ "Delaware Judge Throws Out Case Against Blockchain-Based Payment Network Ripple". Cointelegraph. 14 October 2017.
  17. ^ "AMEX Partners With Ripple For Blockchain Payments". Cointelegraph. 16 November 2017.
  18. ^ "Ripple Announces Partnership With MoneyGram To Speed Fiat Settlements". Cointelegraph. 11 January 2017.
  19. ^ "Ripple Powered Mobile App to Provide On-Demand Domestic Payments in Japan". Ripple. 6 March 2018.
  20. ^ "Live Transaction: Santander's One Pay FX". Ripple. 31 May 2018.
  21. ^ "Ripple Improves Access to India with Kotak Mahindra Bank". Ripple. 27 June 2018.
  22. ^ "Ripple "very confident" of entering Chinese market this year". GtReview. 21 March 2018.
  23. ^ Spaven, Emily (12 November 2013). "Online payment network Ripple Labs receives $3.5m in new funding". CoinDesk. Retrieved 17 March 2014.
  24. ^ "Ripple Labs Announces $3.5 Million Investment Round" (Press release). Ripple Labs. 12 November 2013. Retrieved 17 March 2014.
  25. ^ "Ripple Labs Raises $28 Million From IDG Capital Partners, CME Group, Seagate, and Others". Ripple Labs. 18 May 2015. Retrieved 13 April 2016.
  26. ^ "Ripple Adds Santander InnoVentures Fund as Series A Investor" (Press release). Ripple. 6 October 2015. Retrieved 13 April 2016.
  27. ^ "Ripple Protocol for Financial Transactions" (PDF).
  28. ^ Brian, Jackson. "Beyond Bitcoin". Retrieved 19 March 2014.
  29. ^ Danny, Vega. "Ripple's Big Move: Mining Cryptocurrency with a Purpose". Heavy. Retrieved 18 March 2014.
  30. ^ "Computing For Good". Ripple Labs. Retrieved 18 March 2014.
  31. ^ "World Community Grid". IBM. Retrieved 18 March 2014.
  32. ^ "Ripple gives away $29 million of its cryptocurrency to public schools". CNBC. Retrieved 28 March 2018.
  33. ^ "The Ellen DeGeneres Wildlife Fund Gets $4 Million!".
  34. ^ Truong, Alice (5 March 2014). "Move Over, Bitcoin. CrossCoin Bets On Ripple". Fast Company. Retrieved 18 March 2014.
  35. ^ Kharif, Olga. "Ripple Takes on Western Union With Deal to Grow Payments". Bloomberg. Retrieved January 28, 2014.
  36. ^ Ryan, Philip (April 29, 2015). "Western Union Will Give Ripple a Chance". Bank Innovation. Retrieved 2015-06-09.
  37. ^ Reutzel, Bailey. "Innovators Create Self-Regulating Body for Virtual Currency". PaymentsSource. Retrieved 18 March 2014.
  38. ^ Bradbury, Danny. "Bitcoin industry leaders launch DATA, a self-regulatory body for digital currencies". CoinDesk. Retrieved 18 March 2014.
  39. ^ "Ripple Introduces the University Blockchain Research Initiative". Ripple.
  40. ^ "Welcome to Xpring". Ripple.
  41. ^ Bergstein, Brian. "50 Smartest Companies". MIT Technology Review. Retrieved 12 March 2014.
  42. ^ "Ripple Labs Named a Finalist for a PYMNTS 2014 Innovator Award for Ripple Payments Protocol". Retrieved 3 July 2016.
  43. ^ "Top 100 Blockchain Organisations: From CoinDesk to BitPay, These Are the Most Influential Organisations in the Distributed Ledger Space". Richtopia. Retrieved 21 January 2016.
  44. ^ "Richtopia's List of Top 100 Most Influential Blockchain Projects is out! Congrats to Dash for #47". Dash. Retrieved 27 May 2016.
  45. ^ "The World's Top 10 Most Innovative Companies Of 2015 In Money". Retrieved June 30, 2016.
  46. ^ "20 Fintech Companies to Watch". Retrieved June 30, 2016.
  47. ^ "Ripple Labs Awarded as Technology Pioneer by World Economic Forum". Retrieved June 30, 2016.
  48. ^ "Fintech 50:The Future Of your Money". Retrieved June 30, 2016.
  49. ^ "H2 Ventures KPMG Fintech 100". Retrieved June 30, 2016.
  50. ^ "Innovation Project 2016 Innovator Awards". Archived from the original on 5 April 2016. Retrieved 30 June 2016.
  51. ^ "These are the 5 Hottest Companies in Fintech". Retrieved July 7, 2016.
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External links

Chris Larsen

Chris Larsen (born 1960) is a business executive and angel investor best known for co-founding several Silicon Valley technology startups, including one based on peer to peer lending. In 1996, he co-founded the online mortgage lender E-Loan, and during his tenure as CEO E-Loan became the first company to freely provide consumers' FICO credit scores. By 2000, E-Loan's market value was estimated at $1 billion, and Larsen left the company when it was sold to Banco Popular in 2005. In 2006, he co-founded Prosper Marketplace, the first peer-to-peer lending marketplace in the United States, and he served as CEO until 2012. Later in 2012, he co-founded the company Ripple Labs, Inc., which developed Ripple, software that enables the instant and direct transfer of money between two parties.Self-described as "radically pro-consumer," Larsen has been a vocal advocate of financial privacy in California, and in 2001 he co-founded the coalition Californians for Privacy Now. He has appeared as a speaker at industry events such as Sibos, SWIFT's flagship conference, and written articles for publications such as American Banker. He is also a board-member or advisor for organizations such as Credit Karma, the Electronic Privacy Information Center (EPIC), Qifang, and Betable.On January 4, 2018, Forbes estimated Larsen's worth at $59 billion, briefly putting him ahead of Mark Zuckerberg and into fifth place in their list of world's richest people, and in February 2018 Forbes named him "the richest person in cryptocurrency".

IDG Capital

Founded in Boston in 1992, IDG Capital is an investment firm that specializes in venture capital, private equity, and mergers & acquisitions. The firm currently manages approximately $20 billion of assets and has offices in fifteen cities around the world, including .The firm was the first global investment firm to enter China in the 1990's and an early investor of Baidu, Tencent, Xiaomi, Meituan, and Qihoo 360.In January 2017, IDG Capital and China Oceanwide Holdings Group acquired International Data Group (IDG) and its subsidiaries, International Data Corporation (IDC), IDG Communications, and IDG Ventures. IDG Capital became the controlling shareholder of IDG Ventures.

Lightspeed Venture Partners

Lightspeed Venture Partners is an American venture capital firm focusing on early stage investments in the enterprise technology and consumer space. To date, the firm has backed more than 300 companies, including Snapchat (Snap Inc.), DoubleClick (acquired by Google after IPO), AppDynamics (acquired by Cisco for $3.7B), Brocade (BRCD), Nicira (acquired by VMware), Playdom (acquired, DIS), Pliant Technology (acquired, SanDisk), XtremeIO (acquired, EMC), Blue Nile (NILE), Fusion-io (FIO), (OPWV), Informatica (INFA), Fastfox and Solazyme (SZYM). The fund has 24 early stage enterprise investments that have gone public, the most of any fund in the world.The company invests in the U.S. and abroad, with investment professionals and advisors in Silicon Valley, Israel, India with Lightspeed India Partners and China with Lightspeed China Partners. The team is currently investing out of Lightspeed XI, a $700 million fund and Select II, a $500 million fund.

List of San Francisco State University people

The following is a list of notable people associated with San Francisco State University, located in the American city of San Francisco, California. Many alumni may still need to be added to the San Francisco State University alumni category.

Ripple (payment protocol)

Ripple is a real-time gross settlement system, currency exchange and remittance network created by Ripple Labs Inc., a US-based technology company. Released in 2012, Ripple is built upon a distributed open source protocol, and supports tokens representing fiat currency, cryptocurrency, commodities, or other units of value such as frequent flier miles or mobile minutes. Ripple purports to enable "secure, instantly and nearly free global financial transactions of any size with no chargebacks."

The ledger employs the decentralized native cryptocurrency known as XRP, which as of September 2018 was the second largest coin by market capitalization. Ripple has been adopted by banks and payment networks as settlement infrastructure technology. Ripple relies on a common shared ledger, which is a distributed database storing information about all Ripple accounts. The network is "managed by a network of independent validating servers that constantly compare their transaction records." Servers could belong to anyone, including banks or market makers. Ripple validates accounts and balances instantly for payment transmission and delivers payment notification with very little latency (within a few seconds). Payments are irreversible, and there are no chargebacks.For its creation and development of the Ripple protocol (RTXP) and the Ripple payment/exchange network Ripple Labs was named as as one of 2014's 50 Smartest Companies in the February 2014 edition of MIT Technology Review. A scientific study made by two researchers from Stanford and Stockholm University that studied the money production from an energy consumption point of view and a macroeconomic level stated that running a server on Ripple was comparable to the energy needs of running an email server.

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