XRP's New Use Case: Institutional Credit Collateral

Jazzi Cooper, former RippleX Executive, believes XRP has a 'killer use case' as collateral for institutional credit. This new application of XRP is made possible by the XLS-65 and XLS-66 lending protocol, now live on the XRP Ledger.

The protocol allows market makers and institutional traders to post XRP as collateral without liquidating their positions. This introduces native fixed-term, fixed-rate lending through Single Asset Vaults, enabling institutions to treat XRP as productive working capital.

According to commentator Bill Morgan, this use case was not possible before the SEC lawsuit against Ripple concluded. The launch of the lending protocol on XRPL made it viable.