SBI Holdings (Ripple Partner) joins R3CEV

[Guest]

As a financial group whose main channel is the Internet, SBIH will join the consortium R3 led by R3 CEV, the first such initiative in the world, and proactively consider applying blockchain technology to the financial services of the SBI Group.

 

http://www.sbigroup.co.jp/english/news/pdf/2016/0314_a_en.pdf

Edited March 14, 2016 by Michael Scott

[Haraldo 99]

How do people think this effects the existing Ripple business, is this positive?

 

H

[Hodor 21,715]

17 minutes ago, Haraldo said:

How do people think this effects the existing Ripple business, is this positive?

 

H

I think it's positive.  When I read the filing (nice find @Michael Scott ) I substitute "SBIH" with "Ripple", because of their partnership; it's good for either Ripple or SBIH to be a part of this group.  In saying that, I'm assuming you know all about the partnership between Ripple and SBI.  If not, refer to here: 

 

[Guest]

2 hours ago, Haraldo said:

How do people think this effects the existing Ripple business, is this positive?

 

H

The other side of the coin, is the idea that the banks getting involved with R3 will end up using their own system and not Ripple. That said, there is no guarantee that they will. They could marry with R3 and then cheat on them later by getting in bed with Ripple.

Edited March 14, 2016 by Michael Scott

[Haraldo 99]

When do you think the line will be drawn then, surely everyone must be close to understanding what direction FI are heading in?

H

[lucky 6,318]

Just imagine the following: ripple offers to reserve 50 billion XRP exclusively to all R3 members, pro ratio distributed, which can be purchased at a fixed rate of 0.01 USD within 12 months, on the condition that each of these members implement their own gateway. This would provide them with 500 million capital, plus the value of the remaining inventory. Banks would also make a killing, because the rate of XRP would shoot up at least 20, maybe 100 times overnight.

This would be a killer deal for all participants, and also mark the biggest investment in a crypto company, ever, yet 500 million is not at all an absurd amount for such a transaction.

[cojee 20]

i think that news is neither good nor bad.

because Ripple already focused their business on FX and cross-border payment. on the other hand R3 is trying in securities.

in the blockchain industry point of view, that is good news.

[zea 22]

A little more details on R3 & Ethereum from the latest letter of Pantera Capital: 

Quote

• R3 is a consortium of about 50 banks looking to collaborate and consult with other banks in order to provide distributed ledger technology to help cut costs in the middle and back offices.  Some use-cases for banks of distributed ledger technology include settlements of securities and issuance of syndicated loans. R3 has hired blockchainers like Tim Swanson and Mike Hearn to help develop technology and has stated that they are starting off with building on top of Ethereum. So far, 11 banks have connected using Ethereum: Barclays, BMO Financial Group, Credit Suisse, Commonwealth Bank of Australia, HSBC, Natixis, Royal Bank of Scotland, TD Bank, UBS, UniCredit, and Wells Fargo. 

 

[anotherscott 142]

I seem to get the impression that there are 3 players in town and that they don't want to use the same protocol. You have Ripple (RCL), Digital Assets (Hyperledger) and R3. I think they are all in competition with one another. If R3 is using Ethereum then that's a pretty bold statement that they don't want to work with Ripple.

[tommytrain 949]

1 hour ago, anotherscott said:

I seem to get the impression that there are 3 players in town and that they don't want to use the same protocol. You have Ripple (RCL), Digital Assets (Hyperledger) and R3. I think they are all in competition with one another. If R3 is using Ethereum then that's a pretty bold statement that they don't want to work with Ripple.

Ethereum is a platform for developing instant blockchains and dapps, use of it says little to nothing about future integration with an external FX payment system like what Ripple is focused on. ILP is specifically being designed and developed to connect disparate ledgers, essentially opening the door for the most efficient and liquid ledgers to be used in conjunction with any private/consortium securities and derivatives platforms which do not have a superior payments system. So in this realm DAH and R3 are competing, and platforms like Ethereum, Eris and the other 3/5 platform mentioned in R3s test are also competing. Ripple's core functionality is still cross-border payments and a market for global liquidity. 

[Guest Dizer]

8 hours ago, lucky said:

Just imagine the following: ripple offers to reserve 50 billion XRP exclusively to all R3 members, pro ratio distributed, which can be purchased at a fixed rate of 0.01 USD within 12 months, on the condition that each of these members implement their own gateway. This would provide them with 500 million capital, plus the value of the remaining inventory. Banks would also make a killing, because the rate of XRP would shoot up at least 20, maybe 100 times overnight.

This would be a killer deal for all participants, and also mark the biggest investment in a crypto company, ever, yet 500 million is not at all an absurd amount for such a transaction.

Ripple Business Development Team,

Please read this suggestion and implement!

Thank you,

[rippleric 894]

8 hours ago, cojee said:

i think that news is neither good nor bad.

because Ripple already focused their business on FX and cross-border payment. on the other hand R3 is trying in securities.

in the blockchain industry point of view, that is good news.

Considering the member banks are located globally it's a good thing for ripple as they would like to move and free up their capital /  liquidity around the world and obviously for Forex 

[cmbartley 4,259]

I think on balance it should be considered good. What we know for sure is that SBI Holdings is invested in Ripple and that SBI Holdings is a part of R3. SBI Holdings would then presumably have an interest in both succeeding and exploring opportunities for synergy where possible. Notably, those 11 banks that "connected" using Ethereum connected as a trial. There's no evidence that this is in production and being used to trade securities or assets (although it may one day come to pass). 

"Although the test used technology from blockchain nonprofit Ethereum, “R3 is not necessarily aligning itself with Ethereum,” the spokesman said. “It will be testing multiple technologies in its lab experiments.”" -- R3 Spokesman

Many of those 11 banks have trialed Ripple and likely continue to do so: Barclays publicly supported other banks adopting Ripple, RBS trialed RIpple, CBA too and they say that work with R3 is complementary to Ripple, and we know about TD bank. So trialing is good, but doesn't mean it will be put into production immediately.

I'm not sure anyone has seen this but supposedly Microsoft has partnered with 11 banks (UBS, Credit Suisse... look familiar?) to develop a proof of concept on Ripple. I'm not sure if they made a mistake in this article but it was written a month after the Ethereum Microsoft tests and this Wired article from February 2016 also mentions a pending Microsoft Ripple service. Yes, we all know about Ripple on Microsoft but seeing this supports (weakly) the previous article.

Honestly, we get very little news about Ripple and XRP but for the past 6 months it's been only good news. We shouldn't take news about other companies getting attention to mean that Ripple or XRP are failing (I'm in part referring to this post). There will be many many ledgers in the future, and many of them will serve as rails for value. At the end of the rail customers are going to need to settle and sooner or later they're going to get fed up with waiting days for settlement and all the attendant risk. Ripple is well-positioned to address the settlement issue and with ILP Ripple acknowledges that there will not be one ledger to rule them all.

[Guest]

15 hours ago, cmbartley said:

I think on balance it should be considered good. What we know for sure is that SBI Holdings is invested in Ripple and that SBI Holdings is a part of R3. SBI Holdings would then presumably have an interest in both succeeding and exploring opportunities for synergy where possible. Notably, those 11 banks that "connected" using Ethereum connected as a trial. There's no evidence that this is in production and being used to trade securities or assets (although it may one day come to pass). 

"Although the test used technology from blockchain nonprofit Ethereum, “R3 is not necessarily aligning itself with Ethereum,” the spokesman said. “It will be testing multiple technologies in its lab experiments.”" -- R3 Spokesman

Many of those 11 banks have trialed Ripple and likely continue to do so: Barclays publicly supported other banks adopting Ripple, RBS trialed RIpple, CBA too and they say that work with R3 is complementary to Ripple, and we know about TD bank. So trialing is good, but doesn't mean it will be put into production immediately.

I'm not sure anyone has seen this but supposedly Microsoft has partnered with 11 banks (UBS, Credit Suisse... look familiar?) to develop a proof of concept on Ripple. I'm not sure if they made a mistake in this article but it was written a month after the Ethereum Microsoft tests and this Wired article from February 2016 also mentions a pending Microsoft Ripple service. Yes, we all know about Ripple on Microsoft but seeing this supports (weakly) the previous article.

Honestly, we get very little news about Ripple and XRP but for the past 6 months it's been only good news. We shouldn't take news about other companies getting attention to mean that Ripple or XRP are failing (I'm in part referring to this post). There will be many many ledgers in the future, and many of them will serve as rails for value. At the end of the rail customers are going to need to settle and sooner or later they're going to get fed up with waiting days for settlement and all the attendant risk. Ripple is well-positioned to address the settlement issue and with ILP Ripple acknowledges that there will not be one ledger to rule them all.

Damn your good.

[Guest Haydentiff]

I don't think that Ripple and R3 are competing. I get the feeling that they have some sort of arrangement worked out.

On ‎3‎/‎14‎/‎2016 at 11:11 AM, cojee said:

Ripple already focused their business on FX and cross-border payment. on the other hand R3 is trying in securities.

@Cojee (welcome, btw!) mentioned the different interests. (Darn. I can't tag people when I use my work computer.)

Eris isn't a competitor. Preston used the analogy that Ripple is some sort of motorcycle and Eris is the marmot revving the engine.

I don't see how another company can be anywhere near where Ripple is at right now. Regardless of having to make pivots along the way, they've been playing the long game this entire time. There have been almost 20 MILLION ledger closes. Even if somebody from R3 (or elsewhere) managed to one-up the Ripple protocol, it still would require a significant amount of testing and time to prove that it's safe.  Throw in ILP on top of that and it's game over. 

(Nobody from Ripple ever acts cocky. I don't mind doing it for them. )