As Ripple moves to expand the institutional credit market using its stablecoin RLUSD, market attention is growing over whether the use of the XRP Ledger (XRPL) will extend beyond payments and asset transfers into lending.

Doshsai, an active member of the CoinMarketCap community, reported on the 21st that Ripple is backing a new institutional investment fund, and that Clearpool and Cicada Partners are collaborating to introduce lending functionality on the XRP Ledger.

Clearpool and Cicada Partners' Division of Roles

According to Doshsai, the structure involves supplying RLUSD-denominated working capital loans to fintech and payments companies. Cicada Partners will handle borrower screening and credit risk management, while Clearpool will be responsible for the on-chain lending infrastructure.

However, it should be noted that this should not be interpreted as Ripple directly guaranteeing loan losses. Ripple's role is closer to supporting ecosystem expansion alongside institutional investors, with actual loan underwriting and risk management carried out by separate specialized institutions.

The Key Is Native XRPL Lending… Awaiting Activation of XLS-65 and XLS-66

The core of this initiative is adding native lending functionality to the XRP Ledger. According to materials Ripple released in June, the XRPL lending protocol is designed so that credit assessments are performed off-chain, while loan execution, interest calculation, repayment schedules, and default handling are standardized on-chain.

However, not all of these features have yet been activated on the XRPL mainnet. Doshsai explained that the essential components—the XLS-66 lending protocol and the XLS-65 vault functionality—are awaiting network activation. XLS-65 is a structure that pools a single asset supplied by multiple investors into one vault, while XLS-66 is a protocol that enables fixed-term loans to be executed using those funds.

If this structure is approved on the mainnet, RLUSD's range of use could expand from payments and remittances to institutional lending. Doshsai assessed that approval of these features would create new use cases for RLUSD and could bring institutional lending activity to the XRP Ledger.

XRP Up About 30% in 7 Days… "One of the Strongest Weekly Moves in Months"

XRP's price action has also been strong. Doshsai reported that XRP recently recorded one of its strongest weekly moves in months, rising about 30% over seven days. However, cryptocurrency prices and weekly fluctuations can vary depending on the time of measurement and the exchange, so these figures should be interpreted as of the time of posting.

The key variables going forward are whether XLS-65 and XLS-66 will be approved on the mainnet. If both features are actually implemented on the XRPL and institutional borrowing demand follows, the scope of RLUSD and the XRP Ledger's use could expand significantly.

[This article was written with AI assistance. This article is not intended to encourage cryptocurrency investment. CoinMarketCap community posts may include the author's analysis and opinions, and technology development and network approval schedules are subject to change. Please verify official sources and the latest market information before making investment decisions.]