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RippleX Executive Highlights Institutional Collateral as Key XRP Use Case

A RippleX leader stated that recent XRPL lending protocols enable market participants to use XRP as collateral for institutional credit facilities.

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RippleX Head of Product Jazzi Cooper announced that utilizing XRP as collateral for institutional credit represents a primary utility for the token. This capability is supported by the XLS-65 and XLS-66 lending protocols on the XRP Ledger, allowing institutional traders and market makers to access liquidity through Single Asset Vaults without selling their assets.

The framework provides fixed-term, fixed-rate lending rails while letting institutions manage underwriting and regulatory compliance off-chain. Legal commentator Bill Morgan observed that this application became feasible following the resolution of the SEC lawsuit against Ripple, highlighting that Ripple Prime already accepts XRP alongside assets such as Bitcoin, fiat, RLUSD, and treasuries. Additionally, a September 8 filing from Charles Schwab noted an expanding role for XRP ETFs in repo collateral markets.

Ecosystem infrastructure continues to expand ahead of the Lending Protocol v1.1 update packaged with XRPL version 3.4.0. Partners including Clearpool and Cicada Partners have established nearly $1.8 billion in combined institutional loan origination and underwriting volume, while RLUSD's market capitalization stands near $2.42 billion to provide supporting liquidity.

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