Jazzi Cooper, former head of product at RippleX, identified the use of XRP as collateral for institutional credit as a primary utility for the token. This functionality is enabled by the XLS-65 and XLS-66 lending protocols, which are currently active on the XRP Ledger.
The lending protocol allows market makers and institutional traders to secure credit lines without liquidating their XRP positions. The system utilizes Single Asset Vaults for fixed-term and fixed-rate lending, while institutions maintain control over off-chain compliance and underwriting.
Institutional adoption is supported by platforms like Ripple Prime, which accepts XRP as collateral alongside Bitcoin, RLUSD, fiat, gold, and treasuries. Additionally, a September 8 SEC filing from Charles Schwab indicates that XRP ETFs are increasingly utilized as repo collateral.
Infrastructure development continues as the Lending Protocol v1.1 is scheduled to launch with XRPL version 3.4.0 next week. The ecosystem currently shows significant volume, with Clearpool originating over $930 million in loans and Cicada Partners underwriting more than $860 million.
The combined track record for these institutional loans reaches nearly $1.8 billion. Furthermore, the market capitalization of the RLUSD stablecoin has reached approximately $2.42 billion, providing additional liquidity to the XRP Ledger credit rails.
At the time of reporting, XRP is trading near $1.37. Analysts suggest that the asset must reclaim the $1.55 resistance level to avoid a potential decline toward the $0.70–0.95 range, with a successful breakout potentially targeting the all-time high of $3.66.
