Ripple Backs Institutional Credit Fund Using $RLUSD Stablecoin

Ripple has partnered with Clearpool and Cicada Partners to launch an institutional credit fund that will use its $RLUSD stablecoin on the XRP Ledger. The fund, which is still in testing phase, aims to provide working-capital loans to fintech and payments companies.

The fund will be managed by Cicada Partners, which has underwritten over $860 million of credit since 2021. Clearpool will build the infrastructure for the lending pools, while Ripple provides capital as an investor alongside other institutions.

Ripple's commitment to the fund was not disclosed, but it is participating as a limited partner on the same terms as other investors. The firm does not guarantee losses, and borrowers will repay loans in $RLUSD, creating demand for the token.