Ripple, the company that develops XRP cryptocurrency, and R3 Corda, the blockchain consortium of David Rutter, have signed an out-of-court agreement over a purchase clause in the 2016 agreement that gave R3 options to buy 5 billion XRP tokens, Ripple said in a press release on Monday. At the time of signing, the contract the price of XRP was very low, but it rose significantly in 2017 and 2018, and currently, 5 billion XRP tokens equals more than $1.3 billion.
The out-of-court settlement means that the lawsuits between R3 and Ripple will be closed.
“R3 HoldCo LLC, R3 LLC, Ripple Labs Inc. and XRP II, LLC announce that they have reached a settlement of all outstanding litigation between the parties. The terms of the agreement will remain confidential and both sides look forward to putting these disputes behind them,” Ripple explained in the statement.
In 2016 Ripple and R3 signed an agreement that gave the cryptocurrency company access to the Rutter’s blockchain consortium of several big banks like Goldman Sachs and JP Morgan. In return, Ripple enabled Rutter’s firm to buy 5 billion XRP tokens at an exercise price of $0.0085 each at any time before 2020 and to take 15% of the revenue that Ripple would have in future banking partnerships.
However, in July 2017 R3 claimed that the cryptocurrency startup had sent an email to Rutter unilaterally ceasing the contract without any legal grounds.
Several months later Ripple filed a counter lawsuit claiming that R3 entered the partnership in bad faith, used it to develop a product similar to Ripple blockchain-based services, and misled Ripple about the real participation of Sachs and JP Morgan.
Ripple and R3 target banks with blockchain solutions that claim to speed up transactions and lower costs.
Currently, XRP is the third largest cryptocurrency by market capitalization, with more than $10.4 billion in value.