Ripple Working on New Blockchain-Based Loans Product

UTC by Daria Rud · 3 min read
Ripple Working on New Blockchain-Based Loans Product
Photo: Depositphotos

A new product on the Ripple network would not only reduce the time required to avail capital loans but also improve transparency between the parties involved.

The company behind the blockchain payment protocol and exchange network Ripple seems to be working on a new loans product. Recently, the company posted a new job offering on its website, which allows for such a conclusion. Ripple is looking for a Director of Product Management, Loans and will welcome someone with strong leadership skills and significant product launch experience.

According to the job description, Ripple is expanding into loans and will soon bring a new loans product to the market. The person suitable for Director of Product Management, Loans job will create and launch Ripple’s loan product offering, collaborate heavily with cross-functional internal teams and report the progress to the Vice President of Product Management.

A loan product on the Ripple network would not only reduce the time required to avail capital loans but also improve transparency between the parties involved. Besides, it would provide the working capital to cover a company’s short-term operational needs for low or zero fees.

For Ripple that aims to change the financial system and improve the way the world moves money, such a product will be a huge benefit.

Ripple Labs Joins the ISO 20022 Standards Body

Recently, Ripple has become a part of the ISO 20022 standards body. ISO 20022 is a multi-part International Standard prepared by ISO Technical Committee TC68 Financial Services. It describes a common platform for the development of messages and covers financial information transferred between financial institutions. According to Ripple’s blog post, the company became the first blockchain organization to join ISO 20022.

ISO 20022 membership will bring numerous benefits to Ripple customers. In particular, they will be able to access a network of global financial institutions governed by rules and functional standards. Further, they will be able to leverage software to enable fast, transparent, and seamless cross-border payments. Moreover, customers will connect to one standardized API for all counterparty connections.

Ripple in Trouble over XRP Sale

Along with working on a new loan product, Ripple has to look into a lawsuit of Bitcoin Manipulation Abatement LLC, Puerto Rico’s company. As the plaintiff said, Ripple was selling its XRP tokens as “unregistered security”, which is a violation of the U.S. Securities and Exchange (SEC) law.

According to the lawsuit, Ripple Labs created 100 billion XRP tokens out of thin air and publicly sold them to investors to spark up demand. Besides, Ripple misled investors through false announcements to “artificially inflate the price at which they can sell XRP”. As Bitcoin Manipulation Abatement LLC stated, XRP had no utility during its first sale in 2013. Therefore, the $1.1 billion made by Ripple through the token sale exceeded the company’s total revenue and cash flow.

For Ripple, this is not the first legal trouble. But for a company focused on the blockchain it is no surprise. Many firms creating tokens have faced such lawsuits at least once. Among them are Tron Foundation, BitMEX, and Binance.

Altcoin News, Blockchain News, Cryptocurrency news, FinTech News, News
Daria Rud
Author: Daria Rud

Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.

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