So far, decentralized finance (DeFi) has primarily been linked to Ethereum in the minds of many crypto fans. Interesting developments have been seen here in recent weeks, for example through compound . DeFi does not only have to be connected to ETH, because in theory decentralized financial applications can also be implemented on other blockchains. Little has been heard here in connection with Ripple. In a new interview, the company's CTO talks about possible developments in the next 5 years and also sees potential for DeFi in the ripple network.
Ripple soon with DeFi services for banks?
In an interview with BlockDown TV , David Schwartz, CTO of Ripple was recently asked where he sees the company's network of banks and financial institutions in five years. David Schwartz says the San Francisco startup is currently reviewing whether to offer decentralized financial services (DeFi) to its institutional partners.
The CTO, who is one of the most important architects of the XRP ledger, hopes that RippleNet can be a one-stop shop and the first choice for institutions that want to make many different types of payments.
We are also examining whether we can offer other services through RippleNet - things like loans or maybe, as DeFi grows, the offering of DeFi services for institutional partners.
One of the unique things Ripple has is that we have our software in the transaction flow of all these financial institutions and banks, so we can develop some new products or services, or even something that comes from the DeFi area, and we can offer directly in the transaction flow of these institutions.
Not the company's first indication of DeFi efforts
Schwartz's comments are not the first indication of Ripple's interest in DeFi. Last year, the company announced that it had acquired Logos, a turnkey start-up
to lead an ongoing initiative to research a decentralized financial system that will use XRP at its core.
Ripple has also posted job ads that indicate the company's interest in building a “next generation trading platform”. Ripple wants to integrate the platform into its XRP-based solution for cross-border payments, the On-Demand Liquidity. It remains to be seen whether such a platform will include DeFi.
