Ripple is backing a new institutional credit fund that will lend its $RLUSD stablecoin to fintech and payments companies on the $XRP Ledger, alongside lending platform Clearpool and credit manager Cicada Partners.
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.
Those two do the work the fund needs. The lending protocol handles issuing and repaying loans directly on the ledger. The vault system pools money from several lenders under a manager who decides where it goes, which in this case is Cicada.
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