Ripple is backing a new institutional credit fund designed to lend its RLUSD stablecoin to fintech and payments companies through the XRP Ledger, in a partnership with lending infrastructure provider Clearpool and credit manager Cicada Partners.
The initiative is aimed at providing working capital to financial technology businesses through loans denominated in RLUSD. Cicada will be responsible for identifying potential borrowers, establishing lending terms and monitoring credit risk, while Clearpool is developing the infrastructure required to create and operate the lending pools.
Ripple will participate as an investor alongside other institutions. The companies have not disclosed the total size of the fund or Ripple’s individual investment.
Cicada has reported underwriting more than $860 million in credit and will serve as the fund’s general partner as well as manager of the credit pools. Clearpool, meanwhile, has facilitated more than $930 million in institutional lending since 2021.
Ripple’s role as a limited partner means it will invest under the same terms as other participating investors and will not provide a guarantee against potential lending losses.
XRP Ledger Integration Still Awaiting Approval
Despite the announcement, the lending product is not yet operating on the XRP Ledger’s main network. Clearpool is currently testing the integration on a development network while two underlying ledger features remain subject to the network’s amendment voting process.
One of the key components is XLS-66, a proposed lending protocol designed to allow loans to be issued and repaid directly through the XRP Ledger. The second is XLS-65, which introduces single-asset vaults that can combine funds from multiple lenders under the supervision of a designated manager.
Under the planned structure, Cicada would determine how pooled capital is allocated and manage the resulting credit exposure. The proposed infrastructure could give institutional lenders a more structured way to deploy capital through blockchain-based lending markets.
The fund is designed to bring institutional working-capital lending onto the XRP Ledger using RLUSD, potentially expanding the stablecoin’s role beyond payments into credit and financial-market applications.
The deployment, however, depends on the successful completion of the ledger amendment process and further testing before the infrastructure can become available on the main network.
RLUSD Positioned for Institutional Finance
The use of RLUSD as both the loan currency and repayment asset could create additional demand for Ripple’s dollar-pegged stablecoin. Borrowers would receive RLUSD and repay their obligations using the same asset, allowing lending activity to take place within the XRP Ledger ecosystem.
— Cicada Partners (@cicadacredit) August 20, 2026
XRP itself would not be used as the asset being lent. Instead, the native token would continue to serve functions associated with transaction fees and the minimum account balances required by the ledger.
The lending initiative forms part of Ripple’s broader effort to establish RLUSD as an infrastructure asset for institutional financial activity. The stablecoin surpassed $1 billion in market capitalization less than a year after its launch, reflecting its rapid expansion within the digital asset market.
By combining Ripple’s stablecoin, Clearpool’s lending infrastructure and Cicada’s credit-management capabilities, the initiative could create a regulated-oriented framework for institutional borrowers and lenders on the XRP Ledger.
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We’re excited to announce a new collaboration with @Ripple, @cicadacredit and @ClearpoolFin to bring institutional-grade credit to XRPL.Together, we’re combining Clearpool’s lending infrastructure with Cicada Partners’ credit expertise and borrower pipeline to support… https://t.co/8ddarQ0IAL
— Cicada Partners (@cicadacredit) August 20, 2026
The focus on fintech and payments companies also distinguishes the proposed fund from consumer-focused lending applications. Working-capital financing could allow eligible businesses to access blockchain-based liquidity while giving institutional investors exposure to credit markets denominated in a dollar-pegged digital asset.
XRP Market Rally Adds Momentum
The announcement comes during a period of strong gains for XRP. The token rose nearly 20% over a 24-hour period to around $1.30 and had gained about 30% over seven days, according to the report.
The broader cryptocurrency market was also advancing, with major digital assets recording gains during the same period. However, the proposed lending fund remains separate from XRP’s market performance and will depend on the completion of the required XRP Ledger upgrades.
If the proposed ledger amendments are approved and the integration reaches the main network, the project could give RLUSD a new institutional use case while expanding the XRP Ledger’s role in blockchain-based credit markets.
