Ripple’s RLUSD lending ecosystem supports institutional credit funds that offer loans to fintech companies
On August 21, Ripple is supporting a new institutional credit fund that will partner with lending platform Clearpool and credit management firm Cicada Partners to provide working-capital loans to fintech and payment companies using the stablecoin RLUSD issued by Ripple on the XRP Ledger. According to the disclosure, the fund will extend loans denominated in RLUSD. Cicada Partners will be responsible for finding borrowers, setting loan terms, and managing credit risk; Clearpool will build the infrastructure for creating and managing lending pools; and Ripple, as one of the investors, will provide funding support, though the specific investment amount has not yet been disclosed. This product has not been launched on the XRP Ledger mainnet yet. Ripple will participate as a limited partner, with the same terms as other investors, and will not assume any obligation to guarantee loan losses. Borrowers will receive RLUSD and use it to repay the loans, which will drive demand for the stablecoin and also bring lending activity to the XRP Ledger.
On August 21, Ripple is supporting a new institutional credit fund that will partner with lending platform Clearpool and credit management firm Cicada Partners to provide working-capital loans to fintech and payment companies using the stablecoin RLUSD issued by Ripple on the XRP Ledger. According to the disclosure, the fund will extend loans denominated in RLUSD. Cicada Partners will be responsible for finding borrowers, setting loan terms, and managing credit risk; Clearpool will build the infrastructure for creating and managing lending pools; and Ripple, as one of the investors, will provide funding support, though the specific investment amount has not yet been disclosed. This product has not been launched on the XRP Ledger mainnet yet. Ripple will participate as a limited partner, with the same terms as other investors, and will not assume any obligation to guarantee loan losses. Borrowers will receive RLUSD and use it to repay the loans, which will drive demand for the stablecoin and also bring lending activity to the XRP Ledger.