Ripple’s Xpring to Build XRP DeFi Products with New Advantage
Ripple has made its first move towards building Decentralized Finance (DeFi) products based on XRP.
With its advantage of decentralized payments platform Logos Network, Ripple’s investment arm, Xpring, is going to add nine New York-based engineers. Michael Zochowski, the Founder and CEO of Logos, will become Xpring’s “Head of DeFi Products.” However, it did not disclose the price of the deal.
So, before joining Xpring, Logos was working to build a payments network encouraged by the bitcoin blockchain, with a focus on a scalable, rapid network that still maintains high levels of security.
Ethan Beard, the Senior Vice President of Xpring said that the Logos acqui-hires will help Ripple build XRP derivatives, loans, futures and forwards.
“We’re still at the early stage of figuring this out.” Ethan Beard
He also added:
“We’ve made investments in DeFi companies in the past. We invested in Securitize and Dharma, but it’s now an area where we’re building.” Ethan Beard
However, part of Xpring’s focus is to recognize use-cases outside of the company’s payments network, RippleNet, to build a network of companies around XRP. So far, the company has committed $500 million to 20 companies, including both equity investments and XRP grants, like the $265 million deal brokered with content platform Coil.
Ethan Beard, Senior Vice President of Xpring
Likewise, with the Logos advantage, Xpring now has a team of 32 employees, having developed from a team of just two last May. Beard hopes that the same financial institutions that take advantage of RippleNet to achieve real-time payments and real-time fiat settlements will be interested in XRP-based DeFi products.
“In particular, I’m interested in debt and lending and what that looks like.” Ethan Beard
“It didn’t take long after the first creation of fiat for someone to go to a person who had some and say, ‘Hey, can I borrow that?” Ethan Beard