Ripple Backs Institutional Credit Fund Using RLUSD Stablecoin
Ripple has expanded the utility of its RLUSD stablecoin by backing an institutional credit fund that will provide working-capital loans to fintech and payments companies. The fund, which is being developed in partnership with Clearpool and Cicada Partners, will issue loans denominated in RLUSD and allow borrowers to repay their loans using the same stablecoin.
Clearpool will provide the infrastructure for creating and managing the institutional credit pools, while Cicada Partners will serve as the credit manager, sourcing borrowers and setting lending terms. Ripple will participate as a limited partner alongside other institutional investors and will invest under the same terms, without providing a special backstop or guarantee against losses.
The fund's planned launch is dependent on XRP Ledger validator approval, which is required for the implementation of the Lending Protocol and Single Asset Vault architecture. The underlying lending code has undergone security reviews, including a re-audit by Halborn that identified five findings, none of which were considered critical or high-risk.