On September 27th, Ripple’s investment arm Xpring announced the takeover of the payment startup logo. Focusing on fast and scalable digital payments, Logos will now partner with Ripple to build a blockchain-based financial system with XRP as its main asset.
Ripple created Xpring to support its long-term goal of creating the Internet of Value (IoV). Like the Internet of Things (IoT), the IoV Ripples is defining a new peer-to-peer ecosystem for exchanging assets with no middlemen. It hopes to leverage blockchain and cryptocurrency to enable instant trading in values.
The deal with Logos from Friday as a startup for decentralized finance (DeFi) is a suitable acquisition for Xpring. It also means a new direction for Ripple as it expands its offerings. Logos founder and CEO Michael Zochowski will now lead Xpring’s DeFi Products division. His team will work on payment and financing initiatives for the company.
Ripple has two separate solutions. It has RippleNet, its cryptographically secure payment messaging solution. Some leading banks, including Faysal, Santander, and PNC, have started adopting this as an alternative to SWIFT.
The second solution is to use XRP for payments, which when talking to banks is called the “liquidity solution”. With XRP, one payment can eliminate the need for large foreign bank accounts and the slow and costly correspondent banking network.
But big banks already have accounts, sometimes even branches, in all major jurisdictions, so XRP isn’t that big of a draw there. However, XRP has some appeal to money transfer companies that are struggling to set up foreign bank accounts. Challenger banks could also use the currency instead of taking the time to set up and maintain numerous offshore accounts.
Now Ripple is diversifying its applications through Xpring. It is promoting the use of XRP for content payments by investing $ 260 million in the coil content platform. With the latest takeover of Logos, it expands its DeFi reach. Xpring has yet to announce the value of the deal with the startup.
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