Ripple (XRP) ‘Institutional DeFi’ Vision Faces Scrutiny from Diameter CEO, Gains Praise for Transparency

• Diameter’s CEO David Lighton has questioned Ripple’s labeling of a recent article, noting a discrepancy between the title and the actual content.
• According to Lighton, the caption “Institutional DeFi” does not align with the narrative, as many of the projects Ripple cited are for retail use.
• Lighton praised Ripple’s insight, “Building blocks of institutional DeFi on XRP Ledger,” as a great roadmap of XRPL DeFi.

Explore the nuances of Ripple’s latest DeFi roadmap and the debate over its “Institutional DeFi” label, as examined by Diameter CEO David Lighton.

Ripple’s Institutional DeFi Roadmap: A Closer Look

On Wednesday, Ripple published an insight and its roadmap on institutional DeFi on XRPL. According to the publication, XRPL is uniquely positioned to serve as the foundation for institutional DeFi. Ripple also noted that the roadmap is designed to provide the foundational building blocks and fundamental components of a successful financial system while ensuring security and regulatory compliance at its core.

Lighton’s Critique of the “Institutional DeFi” Label

Diameter’s CEO David Lighton has raised concerns over the title of Ripple’s recent article, arguing that the term “Institutional DeFi” does not accurately reflect the content. He pointed out that many of the projects mentioned are geared towards retail use, which contradicts the institutional focus suggested by the title.

Ripple’s Vision for XRPL DeFi

Despite his critique, Lighton commended Ripple for its detailed roadmap, which he described as a comprehensive guide to XRPL DeFi. He acknowledged that while much of the information is not new, the document effectively consolidates Ripple’s product pipeline, offering a clear overview of upcoming developments.

Upcoming Innovations and Regulatory Compliance

Lighton highlighted Ripple’s estimate of oracles arriving soon via Band Protocol and the introduction of a new Multipurpose Token proposal in Q3. These innovations are expected to provide issuers with more control and data, enhancing the overall utility of the XRPL ecosystem. He also emphasized that labeling the article as “institutional” implies regulatory compliance, making the products accessible to a broader audience.

Conclusion

In summary, while Lighton questions the appropriateness of the “Institutional DeFi” label, he recognizes the value of Ripple’s roadmap for XRPL DeFi. The document serves as a strategic guide, outlining key developments and innovations that promise to enhance the ecosystem. As Ripple continues to focus on regulatory compliance and security, the future of XRPL DeFi looks promising for both institutional and retail users.