Blockchain organization Ripple reveals plans to offer loans through a platform. The organization ,which is associated with XRP, posted a job advert for a director of product management for loans.
The director of product management will be in charge of helping to get the product launched. Their job description includes:
? The creation and launch of Ripple’s loan product offering
? Understanding how Ripple can improve its service for new and prospective RippleNet customers with working capital loans
? Create organizational structure to execute a functional loan offering
? Develop capabilities for the pricing of new loan offerings
? The job advert states that the loans platform will offer capital to businesses that use it.
According to Ripple,
“Ripple is expanding into loans. This person will bring a new loan product to market from concept to launch for RippleNet customers. This person will bring strong leadership skills as they will need to collaborate heavily with cross-functional internal teams and the financial ecosystem of partners and customers.”
Ripple joins an existing market of cryptocurrency lenders with robust decentralized finance infrastructure. Ethereum’s decentralized finance ecosystem and Bitcoin’s lending market account for billions of dollars in value.
Crypto lending allows borrowers to use their cryptocurrency assets as collateral to get a fiat or stablecoin loan. In certain cases, borrowers may use stablecoins and fiat as collateral to borrow crypto assets. The practice has gained significant popularity over the years, with the market growing to over $4 billion in value.
While the growth of the industry has been phenomenal, taxation and regulatory risks loom. The practice of crypto-lending has served as a means by which taxable events can be avoided. Many jurisdictions do not currently have clear guidance on these events but borrowers could find themselves facing complex legal issues when guidance is finally provided.