In a recent video release, the Chief Technology Officer (CTO) of Ripple David Schwartz has revealed the efforts of Ripple to launch new crypto assets on its XRP Ledger.
The company aims to expand the functionality of XRP Ledger and is looking forward to permitting third-party users to launch their cryptocurrencies on the XRP Ledger. Therefore, Ripple is working on adding new exciting features to its Ledger.
According to David Schwartz, among these new features, Ripple is developing a feature that will let people launch their asset-backed crypto tokens on the XRP ledger. He says that there are some other features available on the system that are similar to this one but this is an interesting feature as compared to them as he stated:
One of the features that I think is very exciting is a feature that would allow people to launch… essentially assets pegged to some external value. Features similar to that exist on other systems but the interesting thing about this is that the liquidity is guaranteed by the ledger mechanics.
Stablecoins are an obvious use case
David Schwartz did not explain these features in detail however he said that these might be used for different purposes such as these can be used for launching fixed-value assets on the XRP ledger. Further on, he pointed out that for the new feature Stablecoins are an obvious use case.
According to him:
The key distinguishing property of this proposal is that the stablecoin is always redeemable for XRP on the ledger from the collateral pool. So, for example, if you hold one unit of a USD stablecoin, you can make on-ledger payments at any time, just as if you held $1 worth of XRP.
Ripple is committed to improving the XRPL’s consensus protocol and for this purpose, the company has been proposing several other ways.
In October 2019, David Schwartz talked about the prospect of an XRP-collateralized stablecoin. After that, the company obtained the Logos Network in the month of September. This decentralized payments startup would assist Ripple in creating decentralized finance platforms on the XRP Ledger.