San Francisco-based blockchain payments company Ripple has announced that co-founder and CEO Chris Larsen will step down from his role on January 1, 2017, succeeding him is former AOL and Yahoo executive Brad Garlinghouse. The leadership transition marks a pivotal moment for Ripple as it accelerates its technology adoption.
New CEO's Background and Vision
Brad Garlinghouse brings extensive tech industry experience, having founded Hightail (a file-sharing and sync company), served as president of applications and commerce at AOL, and senior vice president at Yahoo. In an interview with Reuters, he stated: "We're going to stay on course at Ripple. This is the appropriate time to do this because we have a lot of tailwind and momentum on our side. We're not expecting any sharp turns one way or the other." Garlinghouse emphasized his commitment to working closely with Larsen and the Ripple team to advance the blockchain-based cross-border payment network.
Chris Larsen's New Role
Larsen will remain as Ripple's executive chairman after stepping down as CEO. He expressed his desire to reduce daily responsibilities after 20 years in fintech, allowing more time for his two young sons. "I couldn't be happier for Brad, about where we are and how Brad has gotten us here, and what he would be able to do for us going forward," Larsen said. Previously, he led Ripple's fundraising efforts, including a $55 million round from traditional financial institutions and the formation of the Global Payments Steering Group (GPSG) consisting of six banks. Larsen once remarked that Ripple might "never have to raise money again."
Ripple Network and XRP Progress
Ripple has been actively testing its distributed ledger platform with financial institutions. In May 2016, it partnered with Santander to trial international transfers of £10 and £10,000. In July, Canadian bank ATB Financial used Ripple to send a cross-border blockchain payment to Germany's ReiseBank. These experiments demonstrate the potential of Ripple to reduce settlement costs and time.
Meanwhile, Ripple's native digital asset XRP has steadily appreciated over the past three months, achieving a market capitalization of approximately $289 million, making it the third-largest cryptocurrency after Bitcoin and Ethereum. If more banks adopt the Ripple network, XRP's utility value is expected to solidify further.
The GPSG members include Bank of America Merrill Lynch, Santander, UniCredit, Standard Chartered, Westpac Banking Corporation, and Royal Bank of Canada. New CEO Garlinghouse expressed enthusiasm about working alongside Larsen and the Ripple team to drive the next phase of growth.