Ripple's XRP Gains Institutional Lending Traction
Ripple's XRP Ledger has been gaining momentum in institutional lending, thanks to its lending infrastructure. According to Jazzi Cooper, Ripple's product head, one of the key use cases for XRP lies in institutional collateral. Cooper pointed out that despite growing interest in on-chain finance, institutional credit remains largely untapped.
The XRP Ledger's lending infrastructure, including Single Asset Vault (XLS-65) and Lending Protocol (XLS-66), has been a major enabler of this functionality. These amendments provide a framework for combining assets from multiple depositors and enable on-chain, fixed-term, uncollateralized loans.
The XRP Ledger's lending protocol is set to receive an update in XRPL 3.4.0 next week, which will improve important aspects of Lending v1.0. This upgrade will also include regular updates for both the Lending and Single Asset Vault protocols, making them dynamic feature protocols that will gain functionality over time.