Ripple Powers New Institutional Credit Fund on XRP Ledger

Ripple is supporting a new institutional credit fund that provides working capital loans on the XRP Ledger. The loans are denominated in RLUSD, Ripple's proprietary dollar stablecoin. The targets of this fund are financial technology companies and payment service providers.

The partnership involves Clearpool, which builds the infrastructure for lending pools, and Cicada Partners, which sources borrowers, sets loan terms, and monitors credit risk. Ripple participates as a limited partner under the same terms as other investors but does not act as a guarantor of losses or a first-loss risk buffer.

The structure of this fund separates RLUSD from XRP on its network. RLUSD is lent to borrowers, while XRP remains used for transaction fees and minimum balance requirements. The fund's capital targets companies already using stablecoins for treasury management and some cross-border payments.