Ripple Supports New Credit Fund in Stablecoin RLUSD

Ripple has announced its support for a new institutional credit fund that will provide loans in the stablecoin RLUSD. The project is being implemented in collaboration with the Clearpool platform and credit manager Cicada Partners, aiming to ensure financial liquidity for fintech companies on the XRP Ledger network. Cicada Partners will manage credit risk and acquire borrowers, while Clearpool is responsible for building the technical infrastructure. Ripple acts as an institutional investor, without guaranteeing coverage for losses. Cicada has assessed the risk for loans exceeding $860 million, and Clearpool has facilitated loans worth over $930 million since 2021. The system is not yet operational on the main XRP Ledger network, and Clearpool is conducting integration tests. Key protocol upgrades, XLS-66 and XLS-65, are expected to enable lending on the blockchain. Borrowers will receive support in RLUSD, which is expected to increase demand for this stablecoin. XRP will not be the subject of loans, and its role will be limited to covering transaction fees. XRP has seen a nearly 20% increase in value over the past day, reaching $1.30, as part of a broader rally in the cryptocurrency market. Increased interest in the XRP Ledger network and the planned implementation of RLUSD may attract more institutional players.

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