Ripple, Clearpool, and Cicada Launch RLUSD Institutional Credit Fund
The new fund provides working-capital loans to fintech and payments firms to drive utility for Ripple's stablecoin.
Ripple is partnering with Clearpool and Cicada Partners to launch an institutional credit fund that provides working-capital loans denominated in its RLUSD stablecoin. The initiative targets fintech, payments, and crypto enterprises operating on the XRP Ledger (XRPL).
Under the partnership, the fund will issue loans in RLUSD, requiring borrowers to both receive and repay capital in the token. Cicada Partners is tasked with sourcing borrowers, setting loan terms, and monitoring credit risk, while Clearpool is developing the necessary lending infrastructure. Ripple is participating in the venture as a limited partner alongside other institutional investors. The move comes as XRP recently rallied above $1.00, reaching approximately $1.30 amid a broader market rebound linked to U.S. Treasury bond buybacks.
Technical Infrastructure
The fund's operation depends on two pending technical upgrades to the XRP Ledger: the XLS-66 lending protocol and XLS-65 single-asset vaults. These features are essential for the automated management and securing of institutional credit on-chain. Currently, the project is in a testing phase on a development network. The transition to the mainnet will require the official amendment voting process to implement the XLS-65 and XLS-66 upgrades.
Strategic Shift for XRPL
This initiative signals a strategic transition for Ripple, moving the XRP Ledger beyond its primary role as a payment rail toward becoming a comprehensive financial hub. By integrating RLUSD into institutional lending, Ripple is creating a practical, utility-driven demand for its stablecoin. This allows the network to support complex credit markets while maintaining XRP's specific role in handling network fees and balances.
Market Experience and Outlook
The partners bring significant institutional experience to the project. According to CoinDesk, Cicada Partners has underwritten more than $860 million in credit, and Clearpool has facilitated over $930 million in institutional loans since 2021.
Market observers will now be watching the XRPL governance process to see when the XLS-65 and XLS-66 amendments are voted upon and deployed. The successful launch of the fund depends entirely on these technical milestones being met to move the credit facility from the test environment to live institutional use.