XRP as Collateral Gains Traction at RippleX

RippleX's Head of Product, Jazzi Cooper, believes that XRP as collateral for institutional credit is a 'killer use case'. This concept involves using XRP as collateral to secure stablecoin loans. According to Cooper, this could be supported by the XRP Ledger's lending architecture, specifically XLS-65 and XLS-66.

Cooper mentioned a potential 'dual pool' model where one pool contains XRP as collateral and another provides RLUSD (a dollar-denominated stablecoin) as the loan asset. This would allow institutions to pledge XRP without selling their position, much like traditional finance's collateral transformation.

However, it's essential to note that this concept is still in development and requires additional structuring around XLS-65 vaults, loan brokers, or institutional risk-management arrangements. The current XRPL Lending Protocol does not include automated on-chain collateral management and liquidation.