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EU-based Credefi Taps XRP Ledger for Robust DeFi Lending

source-logo  thecryptobasic.com  + 1 more 21 November 2023 13:01, UTC

Credefi has expanded to the XRP Ledger as part of ongoing efforts to enhance its DeFi offerings.

The XRP Ledger has seen an uptick in the number of decentralized finance (DeFi) applications. Joining the growing list of apps is Credefi, an EU-based DeFi application that connects crypto lenders to companies in the region.

On Monday, Credefi announced that it has integrated its DeFi app with the XRP Ledger. The new integration will allow users on XRPL to lend assets and provide short-term loans to Credefi’s lending network.

The loans, which typically feature a fixed interest rate, are issued to companies vetted by Credefi and its third-party risk assessment partner, Experian. Credefi reports that its protocol has issued loans worth over $3.5 million to more than 50 SMEs and has had zero defaults.

To facilitate the latest tranch of XRPL-based loans, Credefi’s so-called “real-world lending products” will tap into GateHub’s EUR and USD rails and Bitstamp EUR stablecoins. Credefi has unveiled a dedicated XRPL page for its new offering and hopes to attract the ever-engaging XRP investor community.

Credefi Choose XRPL For Credibility and Robustness

Per its official announcement, Credefi’s decision to build on the XRP Ledger owes to the layer-1 blockchain’s credibility and robustness. Since launching in 2012, Credefi acknowledges that XRPL has “showcased unparalleled capabilities” in various fields of tokenization.

Additionally, the chain provides relatively low fees and instant settlements, making it ideal for products such as Credefi’s. The EU-based DeFi service providers hope to fully explore the uniqueness of the XRP Ledger to enhance its mission of making DeFi globally adopted.

Meanwhile, as prominent XRP thought leader and X user WrathofKahneman pointed out, Credefi’s debut on the XRPL will benefit the XRP community. The project plans to offer XRP incentives along the line and will also play a role in increased liquidity on XRPL.

XRPL Positions For Real-World Assets

Credefi’s quest to bring real-world asset-linked lending to XRPL comes at a time when the XRPL Foundation is championing a similar course. It is noteworthy that Credefi has no official partnership with Ripple and is only using the chain like every other company building on XRPL.

Yet, the company has goals that align with the XRPL Foundation’s. In a recent interview, Ripple’s CTO David Schwartz lauded the XRPL’s potential to provide a home for real-world assets tokenized on the blockchain.

Financial giants such as JPMorgan and Bank of America are bullish on that sector of the blockchain space, and XRPL is positioning itself to benefit from such institutional interest.


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