Ripple has joined Clearpool and Cicada Partners to bring institutional lending to the XRP Ledger, targeting business financing. The partnership positions XRPL as more than a payments network. It could turn the ledger into a credit marketplace for fintechs and payment firms.
Institutional Credit Takes Shape
Clearpool brings infrastructure after facilitating more than $930 million in loans since 2021. Cicada adds underwriting expertise, with more than $860 million underwritten. Ripple will participate as a fund investor alongside institutions, rather than providing a backstop.
Moreover, the model will use RLUSD for loans supporting working capital needs. RLUSD operates under NYDFS regulation and uses BNY custody, strengthening appeal.
XRPL Targets Real-World Yield
The system will use XRPL’s XLS-66 Lending Protocol and XLS-65 Single Asset Vaults. Consequently, lenders can access curated credit pools while risk managers oversee separate markets.
Additionally, permissioned credentials could address compliance concerns facing DeFi. Clearpool currently tests the integration on XRPL Devnet before mainnet activation.
Notably, each loan may provide XRPL activity via RLUSD settlements and XRP-based fees. Thus, deployment may further strengthen the use of stablecoins and the utility of XRP.
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