Ripple has partnered with Clearpool and Cicada Partners to launch an institutional credit fund on the XRP Ledger, utilizing Ripple's RLUSD stablecoin to provide working capital to fintech and payment companies. Ripple will invest as a limited partner on a pari passu basis. The system relies on the XLS-65 and XLS-66 amendments, currently being tested on Devnet. Meanwhile, XRP surged 30% to around $1.30 in August 2026, even as inflows into spot XRP ETFs cooled.
XRPL institutional lending partnership
- ▪Ripple will invest in the institutional credit fund on the XRP Ledger as a limited partner on a pari passu basis, sharing the same rights and risks as other institutional investors without providing a loan loss guarantee.
- ▪Clearpool will build the infrastructure to raise and manage the lending capital on the XRP Ledger, while Cicada Partners will source borrowers, set loan terms, and manage credit risk.
- ▪Ripple, Clearpool Finance, and Cicada Partners are collaborating to build an institutional credit fund and lending system on the XRP Ledger.
RLUSD stablecoin credit infrastructure
- ▪The lending system will integrate institutional compliance tools on the XRP Ledger, including digital participant identities, Permissioned Domains, Credentials, and a Clawback feature.
- ▪The institutional credit fund on the XRP Ledger will issue and receive repayments in Ripple's RLUSD stablecoin, which operates under New York Department of Financial Services oversight with custody support from Bank of New York.
- ▪XRP will be used for transaction fees and minimum wallet reserve requirements within the XRP Ledger lending network, rather than being the asset issued for loans.
XLS-66 lending protocol amendment
- ▪The lending system is being built directly into the XRP Ledger base protocol using the XLS-65 Single Asset Vaults and XLS-66 Lending Protocol amendments, removing reliance on third-party smart contracts.
- ▪Clearpool is testing the end-to-end lending integration on the XRP Ledger Devnet, while a Mainnet launch depends on independent validators approving the XLS-65 and XLS-66 amendments.
Real-world borrower targeting strategy
- ▪The credit fund on the XRP Ledger will target real-world business borrowers, specifically fintechs, payment companies, and crypto service providers seeking working capital.
- ▪Ripple, Clearpool, and Cicada Partners estimate that roughly 98% of current DeFi yield is generated by crypto market activities like looping, arbitrage, and liquidity mining, leaving institutional allocators without clear paths to productive on-chain credit.
XRP price rally
- ▪XRP surged approximately 30% over a week to trade around $1.29 or $1.30 in August 2026, marking its best run in months amid a broader crypto market rally.
- ▪XRP's daily Relative Strength Index hit 79.2 in August 2026, indicating the token was heavily overbought, following a massive $2.75 billion short-liquidation event on Bitcoin.
XRP ETF inflow trends
- ▪XRP open interest decreased by over 11% from its rally-day high in August 2026, indicating that some of the leverage behind the price surge was unwinding.
- ▪The 30-day streak of net inflows into United States spot XRP ETFs, which amassed $1.18 billion in combined assets after Canary Capital's XRPC launch on November 13, cooled during the August 2026 price surge.
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