Ripple is developing a feature that could allow users to directly mint asset-backed tokens on top of XRP Ledger, the company’s tech chief said.
Chief Technology Officer David Schwartz said in a company video released Thursday that Ripple is working on “exciting” new features to broaden the ledger’s functionality and allow third-party users to introduce other cryptocurrencies into the XRP ecosystem.
Despite that Schwartz did not give details about exactly what the new features are, he said they could be used on XRP Ledger to launch fixed-value tokens. “Stablecoins is the obvious case of use, but it’s not just stablecoins, it’s essentially some external value attached assets,” he said.
Other blockchains have similar features, most notably Tether, which runs stablecoin layers simultaneously on multiple networks. But Schwartz said to asset-backed tokens on XRP would have “guaranteed” liquidity due to the mechanics of the ledger.
Schwartz previously outlined how the liquid on his Youtube channel last October could be a fully collateralized XRP stablecoin. Instead of creating separate markets for each and every digital asset, trades occur in XRP so that the stablecoin remains liquid regardless of its popularity, he explained.
Ripple Made Forays Outside Core Business of Settlements
That would not be the first time Ripple has made forays outside its core business of settlements. In September, the investment arm of the firm, Xpring, acquired Logos Network, a decentralized payment platform. At the time the senior vice president of Xpring said the acquisition would help Ripple build financial products on XRP Ledger.
During the video, Schwartz said Ripple had previously explored additional use cases, further suggesting that the ledger already included some unused features.
In the “early days,” said Schwartz, the engineering team “began to realize the characteristics of the algorithms we had developed, allowing us to do things like a decentralized exchange.”
Sometime in mid-2012, these had already been put into a “functional system” and included a feature that allowed users to issue their own digital assets, he said.