Institutional Lending for RLUSD on XRP Ledger Under Development

Clearpool Finance and Cicada Partners have announced a collaboration to integrate RLUSD as a collateral asset for institutional lending on the XRP Ledger (XRPL). However, the associated lending protocol and single-asset vault functionality remain inactive on the XRPL mainnet. The proposal aims to use RLUSD not just as a payment method but also for institutional credit and settlement processes.

Clearpool will manage the infrastructure for creating and managing lending pools, while Cicada Partners will handle borrower acquisition and risk management. The loan assets are RLUSD, with borrowers receiving and repaying in RLUSD. XRP is used only for transaction fees and minimum account balances required to maintain accounts on the network.

This initiative focuses on expanding XRPL's financial infrastructure rather than using XRP itself as collateral. RLUSD, a dollar-pegged stablecoin issued on XRPL, relies on two key features: the XLS-66 lending protocol for recording loan execution and repayment, and the XLS-65 single-asset vault that aggregates funds from multiple depositors for use in other on-chain protocols.

According to XRPL documentation, the XLS-65 vault can hold various assets including XRP, TrusLine tokens, and multi-purpose tokens (MPT). Currently, these features are under testing on a development network. Mainnet activation requires final approval from validators and completion of development verification steps.

Clearpool's website lists XRPL-based services including RLUSD, XLS-65 single-asset vault, and XLS-66 lending protocol as 'upcoming' rather than active features. The company has also reported facilitating over $930 million in institutional loans since 2021 and Cicada Partners claiming to have secured over $860 million in credit capacity.

It's important to note that these figures refer to past performance, not the scale of the new XRPL-based lending product. The initiative represents a potential expansion of XRPL from payment-focused use cases toward institutional credit infrastructure, pending mainnet activation of XLS-65 and XLS-66 protocols.