Ripple's XRP Gains Institutional Traction as Lending Protocol Goes Live

Ripple's XRP token has gained significant traction as a collateral instrument for institutional credit, thanks to the introduction of lending protocols on the XRP Ledger.

Jazzi Cooper, former RippleX Executive, described this use case as a 'killer application' for XRP. She noted that it is fully enabled by the XLS-65 and XLS-66 lending protocol, now live on the XRP Ledger.

This development represents a shift beyond traditional cross-border payments, where market makers and institutional traders can post XRP as collateral to secure credit lines without liquidating their positions. The protocol introduces native fixed-term, fixed-rate lending through Single Asset Vaults, allowing institutions to treat XRP as productive working capital.

Bill Morgan, a commentator, pointed out that this use case was not possible before the SEC lawsuit against Ripple concluded and the lending protocol launched on XRPL. He noted that Ripple Prime already accepts XRP as eligible collateral alongside other assets.