Ripple says its recent investment in Vega Protocol is designed to help spur adoption of XRP in the world of derivatives.
Vega Protocol recently raised $5 million from a number of investment firms including Ripple’s Xpring in order to help build and roll out its decentralized derivatives platform.
In a new blog post, Ripple’s director of strategic growth for Xpring, Vanessa Pestritto, says the San Francisco startup is focused on boosting adoption of decentralized finance, also known as DeFi.
“Exploring this developing industry requires building, partnering with and investing in great teams that are aligned with the future of finance.
As we build out our own engineering team, Xpring will continue to engage with DeFi teams and communities to support the future of DeFi including the derivatives industry – a trillion-dollar market.”
According to Pestritto, Ripple is aiming for its investment in Vega Protocol to lead to the launch of XRP on the platform.
“This premise for collateralizing assets to work in an interoperable environment was most appealing as we explore new use cases for XRP and the future of decentralized finance.
Vega’s vision to create an open and decentralized network will enable the freedom to trade and make capital markets broadly available. Vega will continue to build their network and explore opportunities to add other assets as collateral, including XRP.”
Vega protocol says it’s testing the final version of its trading system, designed to give people a fully automated and decentralized way to trade derivatives.
The Gibraltar-based company says it plans to release a public testnet soon, but has not revealed a target launch date for the official product.