Ripple wants institutions to borrow against tokenized assets on XRPL
Ripple has proposed a new lending protocol for the XRP Ledger that allows institutions to borrow against tokenized assets. The system aims to automate loan mechanics while keeping credit decisions off-chain.
Why it matters
Represents a move toward institutional-grade decentralized finance (DeFi) infrastructure for cross-border settlements.
The proposed XRPL Lending Protocol, a copy of which was shared with CoinDesk, is built on a simple split. The blockchain handles the mechanics of a loan once it is agreed, how money is pooled, how interest adds up, how repayment is enforced and how a default is processed, while the actual credit decision, whether a borrower is good for the money and on what terms, stays with the lending institution off the blockchain.
Technical reporting on blockchain developments without promotional bias.
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