Ripple Partners on Institutional Lending Market Directly on XRPL
Clearpool is working with Ripple and Cicada to create an institutional lending market on the XRP Ledger. The goal is to connect vetted businesses with institutional lenders, allowing them to borrow RLUSD (a stablecoin pegged to the US dollar) and repay loans with interest.
The project will use Cicada's credit scoring system to assess borrowers' financial positions, cash flows, and credit history before determining loan amounts and rates. Ripple will provide the XRP Ledger for loan payments and settlements, as well as participate as a liquidity provider.
The lending platform is expected to increase utility and demand for XRP by connecting with XRPL's native AMM (Automated Market Maker). This will allow market makers providing liquidity to XRP/RLUSD pools to hold both XRP and RLUSD. As a result, more XRP may be used within the lending ecosystem, potentially reducing its freely traded supply.