Clearpool, Ripple, and Cicada Launch Institutional Lending Market on XRP Ledger
Clearpool, Ripple, and Cicada are working on an institutional lending market for the XRP Ledger, moving beyond payments and token transfers. The project could bring corporate credit onto XRPL, with loans settled in RLUSD.Vet, the XRPL Foundation community lead and dUNL validator, says 'institutional lending is coming.'
Clearpool is building a new lending infrastructure using XRPL's XLS-65 Single Asset Vaults and XLS-66 Lending Protocol. This will provide institutions with a venue for credit that was previously missing on-chain. The project aims to address the gap by creating lending pools where vetted businesses can borrow RLUSD from institutional lenders and repay the loans with interest.
Ripple will provide the XRPL and RLUSD for loan payments and settlements, as well as participate as a liquidity provider. Cicada will handle borrowers' financial position, cash flows, and credit history before determining how much they can borrow and what rate they should pay. Borrowers and lenders will also need to pass KYC and AML checks.
The XRP Ledger already has strong network activity, processing around 1.09 million transactions per day, although activity has recently fallen by 42.7% from earlier monthly levels. Around 117.83 XRP is burned daily, while the ledger has burned around 7,680.43 XRP over the past 30 days.