Ripple Brings Institutional Lending to XRP Ledger via Clearpool, Cicada Partners Partnership

Institutional lending is coming to the XRP Ledger (XRPL), thanks to a new partnership between Clearpool, Cicada Partners, and Ripple. This move brings real-world lending activity onchain, with Ripple providing capital alongside other institutional investors.

Clearpool will provide the lending infrastructure, while Cicada Partners handles credit origination and credit checks. The borrowers will be fintech and payment companies that use stablecoins to fund their day-to-day business needs.

The project uses XRPL's proposed XLS-66 Lending Protocol and XLS-65 Single Asset Vaults, which allows institutions to put money into managed lending pools while credit managers choose borrowers, set loan terms, and manage risk. Cicada has experience with more than $860 million in credit, while Clearpool has helped facilitate over $930 million in institutional loans since 2021.

Ripple will not guarantee the loans, but instead invests in the credit fund alongside other investors. The proposed system seeks to create an activity loop across the XRPL ecosystem, with borrowers using RLUSD for everyday business needs and XRP used for transaction fees and network reserves.