Ripple to Enhance XRP Ledger with Programmability Features Inspired by Ethereum

The team at Ripple is set to enhance the XRP Ledger (XRPL) by introducing additional programmable features. This was shared by David Schwartz, the CTO of the company, in an interview with DL News.

The upcoming «Ethereum-style» update will introduce smart contracts to facilitate payment management, along with a new lending protocol.

According to Schwartz, the objective is to leverage programmability while minimizing associated risks. The team does not aim to match Ethereum’s level of flexibility but rather to bolster XRPL’s functionality. For instance, smart contracts will enable the automatic conversion of received funds into a user-preferred asset.

The lending protocol, which is expected to launch in the third quarter, will feature a hybrid model. An off-chain agent will oversee borrower management and debt collection activities, while XRPL will handle the tokenization of interest in repayments and distribution of payouts.

“It represents a kind of healthy separation between TradFi on the frontend and DeFi on the backend,” Schwartz explained.

While focusing on technical upgrades, Ripple is also actively acquiring other companies.

“Our mergers and acquisitions team is quite busy. We have several potential deals at various stages,” Schwartz mentioned.

Previously, Ripple acquired the crypto brokerage Hidden Road and custody firms Metaco and Standard Custody. Schwartz pointed out that crypto companies have a unique opportunity for acquisitions because traditional financial giants on Wall Street have not yet begun to actively compete for these assets.

In June, it was noted that investment firm Guggenheim Treasury Services launched digital commercial paper on XRPL.

Later, Circle released the USDC stablecoin on the Ripple network.