Ripple Launches Institutional Credit Fund on XRP Ledger

Ripple has partnered with Clearpool and Cicada Partners to launch an institutional RLUSD credit fund, which will issue working-capital loans to fintech and payments companies. The fund will be denominated in Ripple's stablecoin, RLUSD, and will provide dollar-denominated liquidity without using XRP as the loan asset.

Cicada Partners will source borrowers and manage credit risk, while Clearpool is building the lending infrastructure. Ripple will participate as a limited partner and will not guarantee investor losses. The fund is still being tested on a development network due to the XRP Ledger lending and vault features awaiting mainnet approval.

The new credit product would give RLUSD another use if the lending system reaches the XRP Ledger mainnet, allowing institutions to supply and borrow dollar-denominated liquidity without using XRP as the loan asset. The fund's infrastructure is currently being tested on a development network due to the two XRP Ledger features needed to run the product having not completed the network's amendment process.

XLS-65, known as Single Asset Vaults, allows funds from multiple participants to be pooled into a vault managed under defined rules. XLS-66 introduces the lending protocol that can issue, service and repay fixed-term loans directly on the ledger. The proposals entered validator consideration earlier this year.