Ripple Brings Institutional Lending to Private Credit Markets
Ripple is expanding its XRP Ledger into institutional private credit through a new lending system built in collaboration with Clearpool Finance and Cicada Partners. The system aims to connect XRPL with a tokenized private credit market valued at over $10 billion, giving real-world businesses access to working capital across regulated institutional lending markets.
The lending feature will use Ripple's RLUSD stablecoin for loans to businesses seeking working capital. Borrowers will receive loans in RLUSD, while lending transactions will run directly on XRPL. This approach differs from much of DeFi lending, which often circulates funds within crypto markets.
RippleX developers plan to build the lending system directly into XRP Ledger through the XLS-65 Single Asset Vaults and XLS-66 Lending Protocol amendments. Each transaction will require XRP for network fees and wallet reserves, giving the token a direct role in the lending process as activity grows.