Ripple, Clearpool, Cicada build XRPL credit rails backed by $930M in loans

Ripple, Clearpool and Cicada Partners are bringing real-world credit to XRPL, targeting the 98 percent of DeFi yield that comes from trading rather than lending.

Ripple, Clearpool and Cicada Partners announced a partnership on Aug. 20 to build institutional credit rails on the XRP Ledger, backed by $930 million in lending infrastructure and $860 million in underwriting experience.

"We're excited to announce a new collaboration with Ripple, Cicada and Clearpool to bring institutional-grade credit to XRPL," Cicada Partners said in a post on X. "Together, we're combining Clearpool's lending infrastructure with Cicada Partners' credit expertise and borrower pipeline."

The partners estimate that roughly 98 percent of DeFi yield is generated by looping, arbitrage, basis trades, points and liquidity mining rather than productive lending, leaving institutional allocators without a clear path into onchain credit. Clearpool has facilitated more than $930 million in institutional loans since 2021 through its curator-driven structure, which allows independent risk managers to operate separate credit markets with defined risk parameters. Cicada brings more than $860 million in credit underwriting experience, originating and servicing loans, setting borrower covenants and monitoring credit health.

Ripple will participate as a limited partner in the credit fund alongside other institutional investors, with no special backstop role. Capital will be directed to fintechs, payment companies and crypto service providers that use stablecoins for working capital. Ripple's RLUSD stablecoin will serve as the underlying credit asset, while XRPL's Permissioned Domains, Credentials and Clawback features allow institutions to impose eligibility and asset controls.

As the initiative's infrastructure provider, Clearpool will build an institutional credit layer on XRPL through its native Lending Protocol and Single Asset Vault architecture. The protocol does not impose fixed application-level fees, and the platform's curator-driven structure lets independent risk managers operate separate credit markets while maintaining defined risk parameters.

The move extends Ripple's broader push to bring traditional finance workflows onto XRPL. The company is also building repo settlement infrastructure on the ledger, with Ripple Custody named as the immediate customer for a proposed on-chain co-signing system, according to a GitHub discussion by a Ripple product manager. Ripple Prime, formerly Hidden Road, is expected to use XRPL to streamline post-trade operations across FX, swaps and repo markets.

Clearpool is developing and testing the integration on XRPL Devnet, with a technical demo planned to show the lending process from pool creation through repayment. The Lending Protocol and Single Asset Vault amendments are currently undergoing community voting.

The partnership comes as stablecoin activity and tokenized private credit continue to grow, even as most DeFi yield remains tied to crypto market mechanics. If the amendments pass, XRPL would gain a native institutional lending layer that could compete with established credit protocols on Ethereum and other chains. For XRP holders, the initiative could increase network utility as institutional activity on XRPL grows, though the token's role in the credit layer remains secondary to RLUSD.

This article is for informational purposes only and does not constitute investment advice.