The post Ripple Launching New Token Standard on XRP Ledger appeared on BitcoinEthereumNews.com.

Ripple is set to launch a new token standard on the XRP Ledger this month, aiming to enhance its support for real-world assets (RWAs).  Jasmine Cooper, Ripple’s Head of DeFi Product, recently discussed these advancements in a podcast, highlighting a new token type called “multi-purpose tokens” (MPTs). Cooper explained that MPTs are specifically designed for RWAs, enabling the storage of metadata directly with the asset.  This integration enhances the scalability and flexibility of XRPL, making it more suitable for institutional use cases and lowering the barrier to entry for these organizations. Her comments have garnered significant attention from the XRP community. Details of Multi-purpose Tokens (MPTs) Launching on XRPL Notably, the introduction of MPTs is a key component of Ripple’s broader strategy to establish a comprehensive institutional DeFi ecosystem on XRPL. This ecosystem aims to facilitate a range of functions, including asset issuance, value transfer, exchange, and credit, all while prioritizing security and regulatory compliance. In May, Ripple published a report titled “Building Blocks of Institutional DeFi on XRP Ledger,” which previewed the launch of the MPT standard in Q3 2024. According to the report, MPTs will bring a new level of functionality and flexibility to XRPL. The report revealed that MPTs will enable the establishment of intricate token systems that can represent various assets and rights through the use of metadata. This innovation is expected to be particularly beneficial for institutions seeking to tokenize diverse asset portfolios, allowing for efficient lifecycle management of digital assets. Ripple describes MPT as a hybrid token standard that combines the benefits of both fungible and non-fungible tokens. Currently, fungible tokens on XRPL lack key features, most notably metadata. For instance, tokenizing a bond on XRPL using traditional fungible tokens would not allow for on-chain recording of essential bond details, such as face value,…

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Filed under: News - @ September 2, 2024 2:19 pm