ETFs
Ripple CEO believes launch of XRP, Cardano and Solana ETFs is inevitable
Ripple CTO David Schwartz shared his views on the company’s latest DeFi expansion strategy. He noted that Ripple plans to open its doors for large institutions to enter the decentralized finance ecosystem.
New visions include DeFi institutional development, multipurpose digital coin launch, and more. The plan also includes the use of the XRP Ledger (XRPL) to allow institutions to create financial products that interact with DeFi protocols.
Schwartz Provides Insight into Ripple’s Strategy
David Schwartz shared new information regarding Ripple and XRPL. The CTO disclosed the plans at CoinDesk’s 2024 Consensus Conference in Austin, Texas.
Additionally, according to Schwartz, the new roadmap will allow institutions to create highly regulated financial products, such as traditional lending wallets, compatible with DeFi ecosystems.
The CTO also noted that the process would not compromise or sacrifice the fundamental principle of decentralization. Instead, it aims to improve institutional DeFi and regulatory compliance of all operations on decentralized blockchains. Additionally, the executive revealed that Ripple plans to tokenize real-world assets, allowing them to serve as collateral in DeFi applications.
Additionally, Schwartz expanded on the concept by creating a typical regulated financial entity scenario. In his example, the company would issue conventional loans for real estate or businesses.
Additionally, the company would later tokenize the debt to exchange the tokens in a DeFi system. This decision notably combines the advantages of regulatory-compliant products with the flexibility of decentralized finance.
Schwartz said:
“Another example would be the tokenization of real-world assets, where these are regulatory-compliant products that are securities on blockchains but can be used as collateral in DeFi protocols.”
The place of institutional adoption in the conduct of grassroots adoption
Additionally, Schwartz recognized the critical role of institutions in the mass adoption of crypto. He drew his analogy from the development stages of the Internet, which exploded after initial use by the military and government. The explosive growth trickled down to others, leading to popular adoption.
Likewise, Schwartz believes that such a trend is possible on XRPL as a blockchain platform with the right potential for the types of applications illustrated.
Furthermore, he emphasized that popular adoption depends more on institutional adoption. However, he acknowledged that Ripple’s initial move in this direction was premature.
A closer look at Schwartz’s statement reveals the truth about Ripple. Some institutions have adopted Ripple’s blockchain payment system, which uses XRP for transactions, without knowing how the technology works.
Most banks that use Ripple technology do not introduce their customers to the blockchain space.
Additionally, Schwartz reflected on how the crypto space views Ripple’s strategy to drive mass adoption through institutional involvement. He cited the growth trend of stablecoins like USDT as an example. According to Schwartz, stable coins still power most decentralized economies as they are increasingly adopted by institutions.
The CTO enthusiastically recognized the current shift in institutional adoption of blockchain. He noted that they are now engaging their clients in blockchain-related operations.
Additionally, Ripple’s CTO spoke about the growing skepticism regarding crypto regulation. He believed in having clear regulation for stablecoins, tokenized securities and loan wallets.
The technical report editorial policy is focused on providing useful, accurate content that provides real value to our readers. We only work with experienced writers who have specific knowledge in the topics they cover, including the latest technological developments, online privacy, cryptocurrencies, software, and more. Our editorial policy ensures that every topic is researched and curated by our in-house editors. We maintain rigorous journalistic standards and every article is 100% written by real authors.