Ripple Plans XRP-Backed Credit Pools for 2027 Amid Market Shifts
Ripple is preparing to launch a corporate credit product that would allow institutional clients to use XRP as collateral instead of selling their holdings. The company's president, Monica Long, announced that this initiative is set for a broader rollout by 2027. The XRP tokens would be locked in liquidity pools for short-term payment obligations, allowing issuers to retain their positions. However, the impact on the market will depend on whether the pool capital comes from external lenders or Ripple's own reserves.
The specifics of the initial pool size, participating lenders, interest rates, and repayment terms remain undisclosed. This follows a similar credit line introduced in October 2020, which was funded entirely from Ripple's treasury but did not result in lasting XRP inventories among the firms involved. Industry observers are cautious about whether the new model will drive durable demand for XRP.
Long also outlined ambitious plans to increase the value of tokenized real-world assets on the XRP Ledger from $6 billion to $30 billion. She highlighted tokenized money market funds, Treasury-backed repo transactions, and stablecoin transfer settlement as key drivers for this growth. Additionally, Ripple is developing privacy infrastructure using zero-knowledge proofs to meet institutional requirements, while also advancing interfaces for automated AI agents, which have already processed over 11 million transactions on the ledger.
Despite the roadmap, market pricing for XRP has remained stable, trading at $1.50, up 7.4% from its 50-day average. However, institutional flows turned negative on Friday, with US spot ETFs logging $3.28 million in net outflows. This followed a strong September, where these ETFs pulled in $121.4 million, with September 25 seeing the highest single-day inflow at $22.6 million.
A security breach at crypto exchange Bitget added to the cautious mood, with unauthorized withdrawals totaling $387.5 million, including 102.9 million XRP. The incident has revived questions about custody solutions for institutional investors. Regulators have also been active, with the SEC unveiling new custody proposals for crypto assets and confirming the effective date of an amendment to Bitwise's existing ETF.
Several operational milestones are upcoming in October, including the closing of a transaction involving Evernorth on October 7 and the start of trading for the ticker XRPN on the Nasdaq on October 8. The activation of the Batch upgrade for the XRP Ledger could also arrive as early as October 9.