Ripple to Launch XRP-Backed Credit Service in 2027

Ripple is planning to launch a credit service in 2027 that will use XRP as collateral for payment loans. The announcement came from Ripple President Monica Long during the XRP Seoul conference on October 3, 2026. This new initiative differs from Ripple's existing products, which typically allow banks and payment firms to use the technology without holding XRP. The credit service will require locking XRP in lending pools, raising questions about whether this will create sustained demand for the token and influence its price.

The credit service is aimed at Ripple's payment customers, particularly money transfer companies needing short-term cash. XRP will be placed in lending pools to back these loans, offering benefits like 24-hour collateral access and real-time borrowing. Ripple has been integrating its services, with successful pilots on the XRP Ledger's built-in exchange in 2026 and plans to expand in 2027. However, details about the size of the lending pools, potential lenders, interest rates, and repayment currencies remain undisclosed.

Unlike standard payment scenarios where XRP is quickly converted back to local currency, the credit model locks XRP as collateral for weeks or months. This could create sustained demand and potentially increase its price. Institutions like Evernorth have already begun holding XRP long-term, and new lending pools could add more holders. However, the impact on XRP's price will depend on whether external lenders buy XRP on the open market or if Ripple uses its own holdings.

As of October 4, XRP is trading at $1.50, down 50% over the past year and 59% below its all-time high. While Ripple has experimented with lending before, previous initiatives did not lead to significant XRP holdings by payment firms. The success of this new credit service in moving XRP's price will hinge on the specifics Ripple shares before the launch, including the size of the lending pools and the involvement of external lenders.