Ripple’s Xpring Acquires Logos Network to Build XRP DeFi Products
- Ripple is continuing to work on expanding the ecosystem around XRP.
- The acquisition is focused on the mutual development of decentralized financial products.
Brad Garlinghouse, Chief Executive Officer of Ripple, and Clifton Leaf, Editor-in-Chief at Fortune, at Fortune’s Brainstorm Finance conference in Montauk, New York. Rebecca Greenfield/Fortune
Ripple has acquired payments platform Logos Network to help it develop decentralized financial (DeFi) products, the company revealed in a blog post on 27 September.
According to the announcement, Ripple’s incubator and investment arm Xpring acquired Logos Network, a distributed ledger-based payment platform that focuses on speed and scalability, for an undisclosed amount. The goal of this acquisition is to have the Logos team work on a DeFi system that will leverage XRP at its core. Logos’s founder and CEO, Michael Zochowski, will also become Xpring’s “Head of DeFi Products”. He said:
“We expect that our team will work on a variety of projects at all levels of the Xpring platform, with a particular focus on enabling a wide range of DeFi applications. We continue to strongly believe that the future of payments and finance lies in blockchain and decentralization.”
Previously, Logos was focused on developing a payment network, which was inspired by the Bitcoin blockchain, that was focused on a quick and scalable network, which could still maintain high levels of security. With the acquisition of this company, Xpring has now grown its team to 32 employees, with it having only two last May.
Back in July, Xpring revealed its spending since its launch in May 2018. According to the data at the time, Ripple’s incubator had already invested $500 million in over 20 XRP projects.
- A federal judge ruled that the sale of XRP through exchanges and algorithms did not qualify as selling securities, which could have a major impact on several SEC lawsuits.
- The institutional sale of the token, however, did violate federal securities laws, and the lawsuit between the SEC and Ripple will have to go to trial.
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- These documents are seen as central in Ripple’s battle against the SEC, which in 2020 accused the company of selling its XRP token without registering it as a security.
- The documents in question are internal emails, text messages, and expert reports that followed Hinman’s 2018 speech, in which he said ETH and BTC were not securities.
- Decentralized finance (DeFi) has become one of the hottest trends in the crypto world as it’s more transparent and decentralized than traditional finance.
- Here are our top picks of DeFi projects that have a good potential growth, and some of the protocols that did not made the list, such as RING Financial.