It was more than three years ago that Miguel Vias, the former Head of XRP Markets at Ripple, mentioned that Ripple would go into lending at some point. In an Epicenter episode in March 2017, when asked about Ripple’s XRP escrow holdings, Miguel talked about Ripple becoming a lender.
“As these capital markets develop, as liquidity develops, there are going to be folks who want to provide liquidity of the asset but don’t necessarily want to own the asset, because that puts them in harms way from price movements. If you can borrow the asset and create liquidity that way it’s actually a much more efficient way to become part of the liquidity mechanism.”
Miguel spoke about lending as a long-term goal, something that would come after the ecosystem would get built and payments would start running through it.
“One of my longer term goals, after I get the ecosystem built out, after I get payments running through there, as I try to merge the two worlds, the digital asset markets and the traditional capital markets, as I try to do that one of the levers that we will be able to pull will be lending
The time is now
Three years after that interview and with the Ripple ecosystem surpassing 300 customers in November 2019 and millions of dollars worth of payments going through Ripple’s On-Demand Liquidity (ODL) and XRP, the time has come for lending.
In a recently posted job listing, Ripple is looking for a Director of Product Management for Loans. According to the listing, “RippleNet traditionally served its customers with a cross border payment offering, however, 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.”
The Director of Product Management for Loans will create and launch Ripple’s loan product offering and create the relevant organizational structures to properly execute on a functional loan offering. Ripple will serve new and prospective RippleNet customers with working capital loans.
The job description indicates that the loan product is meant to help its customers with working capital loans, which are loans companies take to financially support their everyday operations.