Ripple Makes Its First Move Towards Develop Its Own Decentralized Finance (DeFi) Products
Ripple has taken the first step in its efforts to develop its own DeFi products around XRP. The company has acquired Logos Network, a decentralized payments platform as part of these initial first steps.
Logos Network will be fully integrated into Xpring, Ripple’s investment arm. According to reports, Ripple is expected to bring in a total of 9 engineers from New York into Logos. The engineers will presumably spearhead efforts to develop the DeFi products.
Xspring is also expected to establish a new DeFi Product division as part of the acquisition. The division, according to current reports, will be headed by Micahel Zochwoski, the immediate CEO of Logos Network. The extent of the DeFi product range that Ripple intends to develop is still unknown. But according to Xpring Senior Vice President Ethan Beard, the acquisition of Logos Networks will help the company start working on XRP loans, derivatives, forwards, and futures. Beard did, however, caution that these developments are still at a very early stage.
Ripple has been looking to diversify its portfolio by building companies outside its XRP network. So far, the company has invested over $500 million in 20 such companies. Xpring just recently announced a new deal with content platform Coil valued at $265 million. This was one of the largest investments it’s made so far and it seems like Logos Network is next in line.
Even though the acquisition hasn’t involved a lot of money, it’s definitely an important step for Ripple and its vision to build more products around its XRP altcoin network. Ultimately, the long term objective is to leverage on the XRP ecosystem to develop additional financial services for a wide range of clients. This will not be easy but it’s clear that Ripple is fully committed.