RippleX Sees Institutional Potential in XRP as Collateral

RippleX is exploring XRP as institutional collateral through its credit models on the XRP Ledger. The move could make XRP a more prominent player in institutional lending, particularly with the adoption of XLS-65 and XLS-66 lending architecture. According to Jazzi Cooper, Head of Product at RippleX, 'XRP as collateral for institutional credit' is a major potential application.

The current institutional borrowing process has not yet begun through XLS-65 and XLS-66 on mainnet, but the proposals are advancing through the XRP Ledger's governance and technical review processes. Cooper highlighted the growing interest in a dual pool model, with an XRP pool for collateral and a separate pool for RLUSD as the loan asset.

This structure would allow institutions to pledge XRP as collateral and borrow dollar-denominated liquidity without liquidating their XRP holdings. The concept mirrors traditional finance, where organizations access liquidity by pledging assets on their balance sheet.