XRP is once again drawing market attention. This comes as Clearpool, a decentralized credit protocol, has decided to expand its institutional lending business to the XRP Ledger (XRPL).

Overseas crypto media outlet CoinGape reported that this move is part of a process to introduce new credit products to XRPL and comes amid a broader trend of expanding yield products targeting institutions.

Clearpool stated that it is entering its "next growth phase" by expanding its blockchain business on the XRPL network and converting its existing CPOOL token into a new token called CLEAR. According to CoinGape, existing CPOOL holders will receive CLEAR at a 1-to-1 ratio. New participants will also receive CLEAR based on capital contributions and CPOOL-related rewards.

Clearpool cited two growth opportunities: the XRPL network, which has a long-proven track record, and the institutional credit market, which remains largely untapped. According to CoinGape, Clearpool said, "XRPL is one of the longest-established networks, and the institutional credit market remains mostly unexplored," adding that it plans to "introduce lending infrastructure to the network that connects to the real economy and is ready for institutional use."

According to CoinGape, Clearpool specifically referenced the XRP Ledger's Single Asset Vaults (XLS-65) and Lending Protocol (XLS-66) standards. Clearpool described these as "institutional-grade credit infrastructure native to XRPL" and presented RLUSD stablecoin as a regulated payment asset. Clearpool stated, "The infrastructure for institutional credit is already in place. We will be the layer that operates on top of it."

Ripple's ecosystem participation was also included in the proposal. According to the document, Ripple has pledged investment to support the launch of Clearpool's yield products utilizing XRP and RLUSD, CoinGape reported. CoinGape further noted that Ripple had previously announced an institutional credit fund providing loans collateralized by real-world assets together with Cicada Partners and Clearpool.

■ CPOOL-to-CLEAR Conversion... 70% of New Supply Allocated to Holders

According to CoinGape, this operational proposal also includes a plan to replenish treasury funds alongside the token conversion. Clearpool stated that the vesting period for 99% of the total CPOOL supply has ended and the supply reserved for growth has been exhausted, requiring additional resources to support development and expanded usage.

CoinGape reported that as Clearpool pursues the adoption of the Lending Protocol upgrade on XRPL, this plan could represent a major expansion for the XRPL network.

Under the proposed allocation, 70% of the total new CLEAR supply is allocated to existing token holders for the 1-to-1 conversion. According to CoinGape, the remainder goes 10% to the ecosystem, 15% to the treasury, and 5% to contributors.

The CLEAR supply will also increase. According to CoinGape, the current supply of 1 billion CLEAR will grow to 1.125 billion at the time of the token conversion. Following the proposed release schedule, the total circulating CLEAR supply in three years will reach 1.428 billion.

A buyback-and-burn mechanism was also included in the proposal. According to CoinGape, Clearpool stated that it plans to use half of the protocol fees to buy back CLEAR on the open market and permanently burn the purchased tokens.

The community governance vote on the token conversion and XRPL business expansion will take place on Snapshot. According to CoinGape, Clearpool said it will allow a 14-day period for community feedback before the token holder vote.

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