Ripple joins DeRec Alliance asset recovery initiative

Ripple joined Swirlds Labs and the Algorand Foundation as a founding member of the DeRec Alliance.

The alliance aims to simplify the implementation and recovery of digital assets. The decentralized recovery (DeRec) protocol created within the project allows restoring private information even if users lose their smartphone or other device for two-factor authentication.

Dr. Leemon Baird, co-founder of Hedera, stated that the DeRec Alliance was initially developed as an open-source project to develop a methodology and industry standard for convenient, secure, and decentralized asset recovery for all wallets.

“We encourage every blockchain and every industry to work together to create the standards and the open source code needed to bring safety to the promise of Web3, without the complexity.”

The initiative was initially launched by ecosystem members Hedera and Algorand. Ripple and its division, XRPL Labs, have joined the pair as members of the Technical Oversight Committee with powers for two years.

The head of BankSocial, John Wingate, also noted that the initiative solves one of the most important problems of self-storage of digital assets, the risk of irretrievable loss.

According to Blade Labs CEO Sami Mian, such incidents prevent users from engaging with cryptocurrencies.

“Digital asset self-custody can revolutionize asset ownership and value exchange, but terrible user experience and the risk of permanent loss remains a challenge. By pioneering integration with the DeRec protocol and working closely with the Alliance, we aim to bring this innovation to the masses.”

Ripple announced its stablecoin launch on the XRP Ledger and Ethereum blockchains at the end of 2024. The stablecoin will be 100% backed by dollar deposits, short-term Treasuries and other assets and audited by a third-party accounting firm.