Ripple has partnered with Clearpool and Cicada Partners to bring institutional lending to the XRP Ledger (XRPL). The initiative utilizes native blockchain infrastructure instead of third-party smart contracts to connect real-world borrowers with onchain capital.
Division of Responsibilities
The collaboration divides operational duties among the three participating companies:
- Clearpool: Building the credit infrastructure layer on the XRPL by utilizing the ledger's native Lending Protocol and Single Asset Vault features. Clearpool reports having facilitated over $930 million in institutional loans since 2021.
- Cicada Partners: Acting as fund manager and underwriter to handle credit origination and servicing. The firm's responsibilities include sourcing borrowers, establishing loan terms, and monitoring financial health, with reported underwritings exceeding $860 million to date.
- Ripple: Participating as a limited partner in the credit fund by investing capital on equal terms with other institutional co-investors, rather than acting as a guarantor or backstop.
Loan Mechanics and Operations
Loans through the initiative are denominated in RLUSD, Ripple's stablecoin, which is custodied by BNY and regulated by the New York State Department of Financial Services. The target borrowers are fintech and payment companies utilizing the funds for working capital needs. Additionally, XRP is utilized to settle the underlying lending transactions, which include fees and reserves.
Development Status
The Lending Protocol and Single Asset Vault features are currently navigating the XRPL community governance process and have not yet launched on the mainnet. Clearpool is actively testing the integration on a developer network ahead of an anticipated technical demonstration.
