The XRP Ledger Foundation, the independent non-profit entity behind the development of the XRP Ledger, has announced the launch of the initial phase of the Token Assessment Framework. It comes following a collaboration with Grant Thornton Baltic, a business advisory service provider.
XRPL Foundation’s New Token Assessment Framework
According to the official blog post, the main objective of the framework is to provide transparency for investors in the XRP Ledger (XRPL) ecosystem with an increasing amount of issued tokens.
The first phase involves a self-assessment questionnaire for token issuers. With this move, the foundation expects to guide the issuer through a list of questions to not only offer transparency for investors but also to enhance self-regulation and trust.
“All self-assessments are made publicly available, in a common format, from which individual investors can do their own research and make personal quality assessments. And as each response are signed by the issuer, investors can verify that the self-assessment is actually submitted by the issuer.”
XRPL Foundation also revealed that upcoming phases of the framework will have an option for token issuers to complete a validation and verification process with a third-party auditor. Based on this, it plans to advise them on listing by exchanges, wallets, and other digital asset service providers. It encouraged all the token issuers on the XRPL to complete the framework.
Developments in XRPL Ledger
Ripple launched earlier Xpring to aid in the development of XRPL ecosystem projects and other initiatives via investments, developer relations, etc. XRPL Foundation, on the other hand, was formed in 2020 to share some of the same objectives.
At the peak of the NFT hype last year, Ripple’s developer arm – RippleX – announced allocating $2 million to promote the development of open-source projects involving digital collections on the XRP Ledger.
Ripple also set up a new fund worth $250 million to support the building of non-fungible token projects on its XRP Ledger, wherein it vowed to provide artists and creators with the necessary support. Under this creator fund, the blockchain company has onboarded 4,000 artists, musicians, game designers, and builders for different NFT projects.