Ripple disclosed that, in cooperation with Clearpool and Cicada Partners, it planned to introduce credit products for institutional borrowers into XRP Ledger. The three parties want direct use of the source infrastructure of the XRPL to match the demand for capital with the real world, rather than relying on third-party smart contracts.
The tripartite division of labour has been clarified
In this collaboration, Clearpool is responsible for building credit infrastructure on XRPL, based mainly on the original Lending Production and Single AssemblyVault functions of XRP Ledger. Cicada Partners are responsible for loan initiation, underwriting and post-credit administration, including the screening of borrowers, the setting of loan terms and the tracking of borrowers ' financial position.
The role of Ripple is that of a limited partner in a credit fund. The company will invest in funds on the same terms as co-investors with other agencies and will not assume the role of guarantor or bottom-up.
Lending at RLUSD
The bulletin indicated that such loans would be valued at RLUD. RLSD is a stable currency introduced by Ripple, supervised by the New York State Department of Financial Services and hosted by the Melon Bank of New York. Borrowers are mainly oriented towards financial science and technology and payment companies, and the funds are used for operating capital requirements.
In the course of the transaction, XRP will be used to settle related lending activities, including fees and reserves. Three companies described this model as different from the usual DeFi revenue sources, which rely more on chain-based trading mechanisms, while the programme emphasized the need for real borrowing to match chain-based financing.
The function is still offline.
However, this lending arrangement is still at the development stage. The XRPL Lending Protocol and Single Assembly Vault functions are still in the community governance process and have not yet been formally deployed to the main network.
Clearpool states that the integration is being tested in a network of developers and will be followed by a technical demonstration. This means that the direction of cooperation is clear, but the actual landing still depends on progress and subsequent up-to-date pace of governance in the XRPL community.
Additional information:Clearpool claims that since 2021 it has contributed to more than $930 million in institutional loans, and Cicada Partners claims that the cumulative underwriting was more than $860 million; all of the above data were disclosed by the company itself.