Ripple’s Schwartz said that the platform is developing a new feature that will allow the users to mint asset-backed tokens on top of the XRP ledger as per the company’s chief as we are reading more in the following ripple news.
In a company video that was released a few days ago, the chief technology officer of Ripple David Schwartz says that Ripple is working plenty of new features to expand the functionality of the ledger and will allow third-party users to introduce other cryptocurrencies into the XRP ecosystem. Ripple’s Schwartz didn’t say much on details on how the new features will influence the ripple xrp price but he did say that the features will be used for launching fixed-value tokens on the XRP ledger:
“Stablecoins is the obvious use case, but it’s not just stablecoins it’s essentially assets pegged to some external value.’’
Similar features currently exist on other blockchains such as Tether which runs stablecoin layers on more than one network at the same time. Schwartz explained that the asset-backed tokens on XRP will guarantee the liquidity because of the mechanics of the ledger. Ripple’s Schwartz outlined how a fully collateralized stablecoin will be liquid but rather than creating a new market for each asset, the trades take place in XRP on the stablecoin remains liquid despite its popularity as he explained.
This will not be the first time that Ripple made an entry into the outside of its core settlement business. The investment arm of the company Xpring, acquired a decentralized payment platform Logos Network back in September and at that time, Xpring’s senior vice president explained that the new acquisition will help Ripple create a financial product on the XRP ledger. According to the latest announcements, David Schwartz said that Ripple explored more use cases before suggesting that the ledger already has a lot of un-utilized functionalities that are built into it.
Schwartz said that in the early days, the engineering team ‘’started to realize the properties of the algorithms we’d developed allowed us to do things like a decentralized exchange.’’ These had already been embedded into a functional system in the early 2012’s and included a new feature that allows users to issue their own digital assets.
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