Ripple is developing a feature that could allow users to mint asset-backed tokens directly on top of XRP Ledger, the firm's tech chief has said.
In a company video released Thursday, CTO David Schwartz said Ripple is working on "Exciting" new features to broaden the ledger's functionality and allow third-party users to introduce new cryptocurrencies into the XRP ecosystem.
Although Schwartz did not go into detail on what exactly the new features are, he did say they could be used for launching fixed-value tokens on XRP Ledger.
Schwartz said asset-backed tokens on XRP would have "Guaranteed" liquidity because of the ledger's mechanics.
Schwartz previously outlined how a fully-collateralized XRP stablecoin could be liquid on his Youtube channel last October.
Rather than creating separate markets for each and every digital asset, trades take place in XRP so the stablecoin remains liquid irrespective of its popularity, he explained.
At the time, Xpring's senior VP told CoinDesk the acquisition would help Ripple create new financial products on XRP Ledger.
During Thursday's video, Schwartz said Ripple had explored additional use cases before, further suggesting the ledger already has some un-utilized functionalities built into it.
In the "Early days," Schwartz said, the engineering team "Started to realize the properties of the algorithms we'd developed allowed us to do things, like a decentralized exchange."
UPDATE: This article has been updated to include the fact Schwartz had previously outlined a plan for an XRP stablecoin on his Youtube channel last October.
Third-Party Cryptos Could Launch on XRP Ledger, Says Ripple's David Schwartz
Published on Feb 28, 2020
by Coindesk | Published on Coinage
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