Ripple, the company responsible for helping develop XRP, has announced the departure of Sujay Jaladi from its ranks. Initially revealed to CoinDesk on October 18, the change of personnel means that Ripple is now looking to replace their head of information security. At this stage, both Jaladi and Ripple have declined to say who will take over the role. However, the latter’s head of communications told CoinDesk that it would be business as usual.
“We have a strong security team led by [SVP of engineering Christopher] Kanaan, just as it’s always been,” explained the Ripple representative.
Jaladi to Ensure Harbor Doesn’t Run Aground
For his part, Jaladi will be moving to token start-up Harbor. After recently raising $28 million in strategic funding, Harbor is aiming to become the default platform for private securities. As per the project’s whitepaper, the token will be compatible with Ethereum’s ERC-20 and act as a financial security for a variety of assets such as real estate and fine art. When he assumes his new position, Jaladi will take on a role very similar to the one he held at Ripple.
“I am responsible for the overall security strategy and program. This includes establishing processes and procedures across the company and the platform to ensure the protection of customer data,” Jaladi told CoinDesk.
In real terms, the departure of Jaladi shouldn’t be a concern for those looking to buy XRP. Although Ripple is the only company using XRP, the coin’s price hasn’t suffered markedly in the days following the announcement. In fact, the current average of $0.45 is around $0.10 higher than the price of XRP throughout August and September. The recent price spike is likely due to the recent release of xRapid. Following months of trials and industry hype, the XRP-powered payment platform is now live.
XRP Showing Its Worth
With XRP now having real-world usage, businesses not already invested in the product will be able to see how it works. Up until this point, the price of XRP has mainly survived on the hope that xRapid and any future products would improve cross-border transactions. Now that it’s active in a commercial setting, there is something tangible for investors to pin their assessments on. Given the significance of this, the departure of a security expert isn’t likely to adversely affect the value of XRP or Ripple at this point. However, what’s interesting about Harbor and Jaladi’s new role is its place in the regulatory sphere.
By acting as a security, Harbor’s token will be subject to more legal scrutiny than other cryptos. Jaladi will be responsible for ensuring the company’s security standards fall in line with established financial regulations. While the ultimate fate of Harbor and its blockchain-based security token is unclear at this early stage, it has an interesting parallel with XRP. Despite doing its best to explain the division between its company and the digital asset, there is still a debate as to whether XRP is a security. Although it didn’t create XRP, Ripple does own the majority share of the tokens. What’s more, it has the ability to issue them.
Jaladi’s Ripple Experience Could Help Harbor
For its part, Ripple’s products are only based on XRP. However, given the interplay between the two, US regulators have questioned whether XRP is actually being used as a security token by Ripple. Jaladi’s experience at Ripple could prove helpful for Harbor. Given that it’s bidding to fall in line with current financial regulations, he’ll have an insight, at least in some regards, as to what’s expected and required. Could that give Harbor the edge over Ripple in the long run? In reality, no. The two companies are aiming at different markets. However, there have certainly been situations where ex-employees have gone on to create rival cryptos.
Perhaps the most notable is Charles Hoskinson. After co-founding Ethereum (ETH), the computer scientist went on to create Cardano (ADA). Now the ninth-ranked crypto in the world, ADA is looking like the main threat to Ethereum’s smart contracts system. There’s no doubt, Jaladi’s inside knowledge could help Harbor learn from Ripple’s mistakes. However, it’s unlikely it will turn it into a threat. Ripple wants to change the way banks handle cross-border payments, while Harbor wants to create a new type of security token. However, it will certainly be interesting to see whether Jaladi’s experience can help his new team through the potentially murky waters of the regulatory world.
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