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Clearpool, Ripple, and Cicada Credit are developing an institutional lending platform on the XRP Ledger, leveraging proposed amendments XLS-65 and XLS-66.
Clearpool announced a partnership with Ripple and Cicada Credit to build an institutional lending platform on the XRP Ledger (XRPL), a move designed to integrate decentralized lending with Ripple’s blockchain technology and enhance XRP’s utility [1]. This collaboration aims to address the "missing layer" in on-chain finance by enabling institutions to borrow against digital assets and access liquidity without selling holdings [2].
| At a glance | |
|---|---|
| Development | Institutional lending platform on XRPL [1] |
| Partners | Clearpool, Ripple, Cicada Credit [1] |
| Key Protocols | XLS-65 (Single Asset Vault), XLS-66 (Lending Protocol) [2] |
| Status | Awaiting validator approval [1] |
The partnership focuses on developing a comprehensive lending environment for institutional clients, leveraging Clearpool’s existing decentralized lending protocol [1]. Ripple has highlighted that while blockchain progress has largely focused on asset representation and transfers, the ability to borrow against assets and use them as collateral remains underdeveloped on-chain [2]. The XRPL Lending Protocol is designed to solve this by standardizing loan execution on-chain while keeping credit judgment off-chain, allowing institutions to use their existing underwriting processes [2].
The protocol is built on two complementary components: the Single Asset Vault (defined in XLS-65) for pooling and managing single assets, and the Lending Protocol (defined in XLS-66) which enables pooled liquidity to be originated into loans with defined terms [2]. These amendments are currently in the proposal stage and require validator approval to be fully activated [1, 2]. Developers have begun testing the XRPL Lending Protocol within a testing environment [3].
Ripple emphasizes that the protocol is built for institutional use, ensuring that underwriting remains off-chain, loan behavior is enforced natively on-chain, and risk is structured rather than socialized [2]. This approach aims to support a wider range of credit structures and enable applications like short-term working capital facilities for payment providers or inventory financing for market makers [2].
The development comes as XRP’s price recently fell to its lowest level since November 2024 [3]. While market pricing appears supportive of scenarios where this collaboration enhances XRP’s utility, potentially influencing price expectations, the lending protocol remains in the proposal stage [1]. The success of the platform hinges on the approval of XLS-65 and XLS-66 by network validators [1, 3].
The integration of a dedicated lending protocol on the XRP Ledger could significantly expand its utility for institutional finance, bridging a gap between on-chain assets and traditional credit markets, pending the necessary technical approvals.
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Users deposit cryptocurrency to earn interest as lenders, or they lock their digital assets as collateral to borrow funds without selling their holdings.
It is a decentralized financial service that operates across multiple blockchain networks, allowing users to lend and borrow assets on different chains to increase accessibility and liquidity.
Some platforms operate as decentralized protocols without credit checks, while others, such as Nexo, may obtain specific authorizations to offer regulated credit services within local consumer credit frameworks.
Primary risks include market volatility, the potential for collateral liquidation, and the fact that funds deposited on these platforms are typically not insured.