Ripple Partnerships Fuel Institutional Lending on XRP Ledger
The XRP Ledger is expanding its capabilities beyond token transfers and payments as Clearpool, Ripple, and Cicada collaborate to build an institutional lending market.
This new initiative will utilize XLS-65 Single Asset Vaults and XLS-66 Lending Protocol to facilitate loans settled in RLUSD with KYC/AML checks. Ripple will provide liquidity for the loan settlements.
The goal is to create lending pools where vetted businesses can borrow RLUSD from institutional lenders, repaying the loans with interest. However, these features are not yet live on XRPL Mainnet.
Clearpool believes that this platform will address the gap in credit infrastructure for institutions, which were missing a venue built for credit.