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Try the Scope Mentor
Ripple, Stellar, and the Secret “Dual Protocol” Strategy
“Sometimes the greatest rivalries are scripted.”
Jed McCaleb, co-founder of Ripple Labs and architect of the XRP Ledger, suddenly left the company after what was described as a “fallout.”
Weeks later, he launched a “rival” project — Stellar (XLM).
But more than a decade later, the question remains: Was this really a falling out… or the most brilliant strategic diversion in crypto history?
Jed wasn’t just another executive. He was:
Co-founder of Ripple Labs
Lead architect of the XRP Ledger
A visionary who helped conceptualize tokenized cross-border value transfer before most even understood blockchain
So when he left in 2013 to start Stellar, an almost identical network, the move raised eyebrows. Stellar was presented as Ripple’s “open-source humanitarian rival”, focused on retail payments and financial inclusion.
But under the surface, something didn’t add up.
When you look closely, XRP and XLM aren’t as different as people think:
| Feature | XRP | XLM |
|---|---|---|
| Consensus Protocol | Unique Consensus Algorithm (Ripple) | Federated Byzantine Agreement (very similar structure) |
| Mission | Institutional cross-border payments | Retail, remittance, humanitarian payments |
| Global Ties | BIS, IMF, central banks | UN, World Bank, NGOs |
| Architecture | Near-identical transaction structure | Forked concepts from XRP Ledger |
Even Stellar’s early codebase drew heavily from Ripple’s designs. This wasn’t just competition. It looked more like a branch of the same tree.
This is where the story gets interesting.
XRP’s Institutional Backbone:
Embedded in BIS projects (mBridge, Agorá)
Used in central bank liquidity pilots
Preferred for CBDC interoperability
Stellar’s Humanitarian Front:
Partnered with the UN for cross-border remittance systems
Received World Bank grants (2020) for “financial inclusion”
Used by NGOs and aid organizations for rapid payments in emerging markets
Two rails.
Two missions.
But complementary, not opposing.
A growing number of researchers believe that Ripple and Stellar were split intentionally.
The theory goes:
XRP = Institutional Rails
XLM = Retail & Humanitarian Rails
One network could dominate the banking corridors without appearing monopolistic. The other could infiltrate remittance and aid sectors, under the banner of humanitarian innovation.
The result?
A dual-protocol architecture that infiltrates both halves of the future financial system institutional and civilian without triggering regulatory alarms.
When founders leave in anger, they usually dump their holdings, criticize the company, or disappear.
Jed did none of that.
He slowly and methodically sold his XRP, over several years.
He never attacked Ripple publicly.
He simply “moved on” quietly, strategically.
Almost as if it was part of the script.
Ripple focused on building elite settlement infrastructure, integrating with BIS, IMF, and CBDCs.
Stellar embedded itself in retail payment networks, NGO pipelines, and UN humanitarian systems.
Two fronts.
One mission.
Global tokenized liquidity.
Many crypto observers believe the “rivalry” between XRP and XLM is more theater than reality a smokescreen designed to make two sides of the same strategy appear unrelated.
Regulators see competition.
Banks see alternatives.
But insiders? They see dual protocol dominance.
Ripple & Stellar may not be rivals at all.
They might be two wings of the same bird.
Jed’s exit has been framed as a breakup story. But history might one day reveal it as one of the most strategic moves in the evolution of digital money.
XRP and XLM aren’t fighting each other. They’re dividing the map.
