The XRP Ledger is experiencing a surge in decentralized finance (DeFi) applications, with Credefi, an EU-based DeFi platform, joining the expanding ecosystem.
In a recent announcement on Monday, Credefi revealed its integration with the XRP Ledger, enabling users to lend assets and offer short-term loans within Credefi’s lending network. Under this collaboration, XRPL users can engage in lending activities, providing liquidity for 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 tranche 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.
XRP Ledger 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 their launch in 2012, Credefi acknowledges that XRPL has “showcased unparalleled capabilities” in various fields of tokenization.
In addition, 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 Position In 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.
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
Currently, XRP trades at 0.6152 per token