Key Takeaways
- RippleX Product Head Jazzi Cooper called XRP collateral for institutional credit a “killer use case.”
- XRPL’s XLS-65 and XLS-66 proposals are designed to support institutional lending and credit markets.
- Ripple is already supporting institutional lending initiatives built around the XRP Ledger.
XRP could gain a new institutional role as collateral for credit markets, according to RippleX Product Head Jazzi Cooper.
“XRP as collateral for institutional credit is a killer use case,” Cooper said on X on Sept. 11, adding that the use case is supported by the XRP Ledger’s XLS-65 and XLS-66 lending infrastructure.
The comments point to an expanding role for XRP beyond its traditional association with cross-border payments and settlement.
XRP Could Back Institutional Credit
XLS-65 introduces Single Asset Vaults to the XRP Ledger (XRPL), allowing assets from multiple depositors to be pooled and used by other applications. These vaults can support XRP alongside issued assets.
XLS-66 builds on that infrastructure by introducing a native lending protocol designed primarily for fixed-term, uncollateralized institutional loans.
Under the proposed model, underwriting and borrower assessment can take place off-chain, while loan issuance, repayments, interest, and defaults are managed onchain.
While XLS-66 primarily targets uncollateralized credit, collateralized lending structures can also be built on top of the protocol with additional infrastructure.
That potentially opens another use case for XRP. Institutions holding the token could use their positions to support borrowing arrangements rather than selling XRP to access liquidity.
Ripple Is Already Moving Into Institutional Lending
Ripple has already started pushing XRPL deeper into institutional credit markets.
Clearpool and Cicada Partners have been working on an institutional lending model using XLS-65 and XLS-66, with plans to provide vetted businesses with working-capital loans denominated in Ripple’s RLUSD stablecoin.
Cicada handles credit origination and servicing, while Ripple has participated as a liquidity provider alongside other investors.
The broader strategy fits Ripple’s effort to position XRPL as infrastructure for institutional decentralized finance, spanning payments, tokenized assets, stablecoins and credit markets.
However, the lending infrastructure remains dependent on XRPL’s amendment and validator approval processes before it becomes fully available on mainnet.
If adoption follows, XRP’s institutional proposition could broaden significantly. Instead of serving primarily as an asset for payments and liquidity transfers, XRP could also become productive balance-sheet collateral for institutions seeking credit without liquidating their holdings.
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Dr. Guneet Kaur is a senior editor at CCN.com and a Science Fellow at Exponential Science. She is a fintech and blockchain expert with extensive experience in digital finance education, blockchain ecosystems, and cryptocurrency markets. She has worked with global media such as Cointelegraph, as well as education and blockchain platforms, to design and lead strategic content and learning initiatives. As an educator and assessor for top-tier executive programs, she bridges real-world fintech trends with academic insight.
Dr. Kaur is also a published researcher and peer reviewer across fintech and data science journals, including Financial Innovation Journal and International Journal of Big Data Intelligence and Applications. Her work spans data-driven analysis, Web3 innovation, and technical content development. With a strong foundation in both industry and academia, she translates complex financial technologies into practical applications, empowering learners, professionals, and institutions across the rapidly evolving digital finance landscape.
