Ripple, Clearpool, and Cicada Partners are collaborating to build an institutional lending market on the XRP Ledger (XRPL) utilizing the regulated dollar stablecoin RLUSD as the primary credit asset. The initiative aims to shift decentralized finance yields away from trading-driven strategies and toward loans backed by real business demand.
Under the initiative, each organization assumes a distinct role. Clearpool is responsible for building the lending infrastructure using XRPL's proposed Lending Protocol and Single Asset Vault architecture. Cicada Partners will act as the fund general partner and credit pool manager, sourcing borrowers, setting covenants, and monitoring credit quality. Ripple will supply capital as a limited partner alongside other participants on equal terms and provide settlement infrastructure, though it will not act as a financial backstop.
The project targets fintechs, payment companies, and crypto businesses seeking working-capital loans denominated in RLUSD. The organizers note that approximately 98% of current DeFi yield is driven by market mechanisms such as looping, arbitrage, basis trades, and liquidity incentives. This initiative is designed to offer a traditional return model based on interest paid by operating companies.
The infrastructure is not yet live on the XRPL mainnet. Clearpool is currently testing the integration on the network's Devnet. A mainnet launch is contingent upon the approval of the Lending Protocol (XLS-66) and Single Asset Vaults (XLS-65) through the network's amendment voting process.
If activated, the features will allow loan issuance, repayments, and vault accounting to run natively on the XRP Ledger. The system plans to utilize XRPL features including Permissioned Domains, Credentials, and Clawback to restrict access to verified participants and support institutional compliance requirements, while XRP continues to serve as the native asset for transaction fees and reserves.
