Ripple, in partnership with Clearpool and Cicada Partners, is building an institutional lending market on the XRP Ledger using RLUSD, Ripple's regulated dollar stablecoin, as the core credit asset.
The project targets a structural inefficiency in DeFi: approximately 98 percent of current yield originates from trading-driven mechanisms—looping, arbitrage, basis trades, and liquidity incentives. This initiative redirects capital toward loans backed by tangible business demand instead.
Clearpool is constructing the lending infrastructure and has facilitated over $930 million in institutional loans since 2021. The system will utilize XRPL's proposed Lending Protocol (XLS-66) and Single Asset Vault architecture (XLS-65), enabling native loan issuance, repayments, and vault accounting directly on-chain without external smart contracts.
Cicada Partners will originate and manage credit pools, drawing on its track record of underwriting more than $860 million in credit. The firm sources borrowers, establishes loan covenants, and monitors credit quality.
Ripple contributes capital alongside other limited partners on equal terms and supplies settlement infrastructure. The company does not serve as a backstop for the loans.
Target borrowers include fintech companies, payment firms, and crypto businesses requiring working capital. These entities typically use stablecoins for treasury management and cross-border transactions. Lenders will derive returns from interest paid by operating companies rather than volatile crypto market incentives.
The infrastructure incorporates XRPL features—Permissioned Domains, Credentials, and Clawback—that restrict access to verified participants and support institutional compliance. XRP continues to function as the network's native asset for transaction fees and reserves.
Clearpool is currently conducting integration tests on the Devnet. The proposed Lending Protocol (XLS-66) and Single Asset Vaults (XLS-65) are undergoing XRPL's amendment voting process. If approved, the system will allow the ledger to compete directly in the growing on-chain private credit sector.
