Home Ripple, Clearpool & Cicada Bring Institutional Credit To XRP Ledger

Ripple, Clearpool & Cicada Bring Institutional Credit To XRP Ledger

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Ripple, Clearpool & Cicada Bring Institutional Credit To XRP Ledger
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Ripple, Clearpool and Cicada Partners are working together to bring institutional credit to the XRP Ledger, using Ripple’s RLUSD stablecoin as the underlying credit asset. Clearpool will provide the lending infrastructure, while Cicada will handle credit underwriting and loan servicing. Ripple will participate as a limited partner alongside other institutional investors.

The platform is being tested on the XRPL Devnet and is designed to provide financing to fintech companies, payment providers and crypto businesses that use stablecoins for working capital.

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The partnership is aimed at a part of decentralised finance that has so far received less attention than crypto trading. Much of DeFi activity is still linked to trading strategies such as arbitrage, basis trades, leverage and liquidity incentives. The three companies want to put more traditional business lending on blockchain infrastructure.

Clearpool will build the lending system using its Lending Protocol and Single Asset Vault architecture. The platform has facilitated more than $930 million in institutional loans since 2021. Its structure allows different credit managers to operate separate lending markets and set their own risk conditions.

Cicada Partners will take responsibility for the credit side of the operation. It will assess borrowers, set loan terms, originate loans and monitor borrowers after financing has been provided. The company brings more than $860 million in credit underwriting experience to the project.

Ripple will provide capital as a limited partner rather than acting as a special backstop. The fund is expected to focus on companies that already use stablecoins as part of their financial operations and need working capital.

RLUSD, Ripple’s dollar-backed stablecoin, will serve as the main credit asset. The XRP Ledger also offers features that could help the platform manage access and compliance. These include Permissioned Domains, Credentials and Clawback.

The project is currently being developed and tested on XRPL Devnet. A technical demonstration is planned to show the complete lending process, from creating a lending pool to borrowing and repaying funds.

However, some of the required changes to the XRP Ledger still need community approval. Proposed amendments to the lending protocol and Single Asset Vault system must receive sufficient support from trusted validators before they can become active.

The announcement comes as Ripple continues to expand its institutional financial infrastructure. Ripple Prime recently completed a $275 million private placement of senior unsecured notes, with the proceeds expected to support its US business and services such as clearing, financing and prime brokerage.

If the XRPL lending project moves ahead, it could give institutional borrowers another way to access credit while bringing real-world lending closer to the blockchain. For Ripple, it is also another step towards positioning the XRP Ledger as infrastructure for traditional financial activity, rather than simply a network for moving crypto assets.

 

 

 

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Written by
Kapil Rajyaguru -

Kapil Rajyaguru is a news editor at 3.0 TV with over 15 years of professional writing experience and more than four years dedicated to the cryptoverse.

An engineer by education and a writer by passion, Kapil brings a rare mix of technical insight and storytelling finesse. A firm believer that cryptocurrencies, blockchain and AI are the building blocks of the future, he crafts in-depth news and analysis to educate, empower and prepare the masses for the next frontier of Web3.

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