Ripple, Clearpool and Cicada Partners are promoting an institution-oriented chain credit programme on XRP Ledger (XRPL), which seeks to combine business finance, stable currency settlement and public chain infrastructure. Under the tripartite division of labour, Clearpool provides the lending infrastructure, Cicada Partners is responsible for the introduction and credit clearance of borrowers and Ripple participates in the credit fund as a liquid provider.
The tripartite division of labour has been clarified
The focus of this cooperation is not on the common liquidity incentive DeFi benefits, but on lending to real operations. According to the article, Clearpool has contributed to over $930 million in institutional loans since 2021, and Cicada Partners has completed over $860 million in credit guarantees.
Ripple is not at the bottom of the arrangement, but on the same terms as other agencies. This means that its role is closer to the provider of funds than to the guarantor or the final recipient.
- Clearpool: Providing chain lending infrastructure
- Cicada Partners: Responsible for borrower source and credit management
- Ripple: Participate as LP
RLUSD is used to borrow funds
Under the programme, borrowers can access RLUSD financing, and the financier provides this price stabilization currency to a selected credit pool. If the borrower further used RLUSD for payment and settlement, the use of the stabilization currency could also be expanded.
The logic given in the article is that when institutional funds enter, they can be channelled through RLSD lending to real businesses and then attract more money back from repayments and returns. This will drive both stable currency use and XRPL network activities.
XRP remains an original asset on XRPL to pay fees and account reserves, resulting in increased chain activity and possibly increased demand for network infrastructure.
Still waiting for the community to vote.
Technically, this model is based on the proposed XLS-66 loan agreement and XLS-65 single-assets treasury of the XRPL, with the objective of supporting lending, repayments and the recording of accounts by liquid providers at the account level. It is also mentioned that licensing access and document-based control mechanisms may be more in line with the requirements of the agency for compliance management.
Clearpool is currently developing the relevant integration on XRPL Devnet and plans to demonstrate the full lending process from the creation of the pool to repayment. However, these amendments still need to be completed before voting in the XRPL community before access to the main network is possible.
If the follow-up deployment proceeds as planned, institutional credit could become one of the operational directions of the next phase of the ERP process.