Ripple backs an RLUSD credit fund amid XRP's best week in months
Ripple is backing a new credit fund that utilizes its dollar-pegged token, RLUSD, to provide working-capital loans on the XRP Ledger. The initiative aims to integrate institutional lending into the blockchain ecosystem as XRP experiences a significant market rally.
Why it matters
This move represents a bridge between traditional institutional finance and decentralized ledger technology, potentially increasing the utility of Ripple's ecosystem.
The fund will provide working-capital loans denominated in RLUSD, per a release shared with CoinDesk, with Cicada sourcing borrowers, setting loan terms and monitoring credit risk. Clearpool is building the infrastructure used to create and manage the lending pools, while Ripple provides capital as an investor alongside other institutions.
Neither the size of the fund nor Ripple's commitment was disclosed.
None of it is live on the XRP Ledger's main network yet, however. Clearpool is testing the integration on a development network, and the two ledger features underpinning the product, a lending protocol known as XLS-66 and single asset vaults under XLS-65, are still going through the network's amendment voting process, as CoinDesk earlier reported .
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