XRP as Institutional Credit Collateral: A Potential 'Killer Use Case'
Ripple's product head Jazzi Cooper has identified a significant potential use case for XRP, suggesting that institutional credit as collateral for the digital asset could be its 'killer use case.'
This opportunity lies in the underutilization of institutional credit on-chain finance, despite growing interest in this area. According to Cooper, the $XRP Ledger's lending infrastructure is a key enabler, with XLS-65 and XLS-66 providing foundational support for lending functionality.
XLS-65, the Single Asset Vault amendment, allows combining assets from multiple depositors, while XLS-66 enables on-chain, fixed-term, uncollateralized loans utilizing pooled funds from a Single Asset Vault. These protocols are currently in voting and represent significant institutional lending deployments on XRPL.
The $XRP Ledger Lending Protocol will soon receive an update with improvements and fixes, including the addition of a 'MemoData' field to the 'VaultDelete' transaction. This revision is part of Ripple's efforts to expand institutional lending capabilities on the network.