USDX, A XRP-Backed Stablecoin, Is Developed By Kava Labs With A Native Token XRS
USDX, A XRP-Backed Stablecoin, Is Developed By Kava Labs
Kava Labs is reported to be developing a new stablecoin based on Ripple’s XRP token. The new token will be called USDX and it will maintain parity with the USD. USDX will also have its own native token, which will be called XRS and it will be used by the validators of the network in order to vote on governance issues.
According to the reports, Kava Labs is working together with the Interledger Protocol (ILP) on this project in order to bring more interoperability to the system as it will be able to use ILP exchanges and wallets.
The project obviously has the support of Ripple as Kava Labs is a company backed by Xpring, well-known s the venture capital arm of the technology company.
Brian Kerr, the co-founder and COO of Kava Labs, has told the crypto media that the peg with the XRP is currently only an idea and that the team is exploring the feasibility of the whole project as they will still make a strategic decision on whether to use the technology or not in the future.
The project will also use Cosmos Zone, a blockchain focused on the interoperability and scaling of proof of stake chains. USDX will basically be implemented on the Cosmos Zone blockchain while pegged to the XRP to issue what could be understood as a token collateralized by XRP. The co-founder of the company has affirmed that the project is feasible so far and that they are moving forward.
Kerr affirmed that one of the main reasons why the project was being developed on top of the XRP ledger was because it was one of the most liquid and fast blockchains out there. Also, he highlighted the connections between the team and Ripple, which helped to make XRP the most obvious choice for the project.
What About The XRP Community?
Ever since the online community that gravitates towards XRP and Ripple has discovered about the coin, they seem pretty excited about it. @GermanCryptoInv, from Twitter, was the first to stop the new token on the Github.
At the moment, however, the main focus of the team is the Switch App, which will help users to swap cryptos with more speed. According to Kerr, they would need a huge movement in their resources in order to develop the XRP-based solution quickly as well so it may take a while before the community can finally be excited for real.
The Future of USDX
Kerr affirmed that, if they did wish to involve all their resources in this project, they would either move towards XRP or then Bitcoin (BTC), which is another well-established token in the market. Other large-cap tokens are also being considered such as Ethereum and Binance Coin.
He even affirmed that they would love to be able to implement the project with BNB tokens, too. Kerr affirmed that he did not speak to Binance yet but that they are doing an incredible job with their decentralized exchange so far.
What are the next steps, then? To test the success of the project using XRP and then maybe move towards other tokens later. This would require partnerships and more effort, though, so you should not wait for this kind of development anytime soon.