Clearpool plans to expand XRPL and migrate CPOOL

Clearpool proposes to expand institutional lending products to XRP Ledger and replace CPOOL with CLEAR through a 1:1 token migration and treasury injection.

Core Summary:

• 70% of the initial allocation of CLEAR will be used to support 1:1 migration for existing CPOOL holders.
• Clearpool plans to build credit products around the vault and lending standards proposed by XRPL.
• Ripple has committed capital to support revenue products denominated in XRP and RLUSD.
• 50% of the agreement fee will be used to repurchase CLEAR on the open market and permanently destroy the tokens.

Clearpool plans to launch institutional credit products on XRPL

Clearpool said in its governance proposal that the expansion represents the "next growth stage" of the agreement, which combines the migration to XRP Ledger (XRPL) and plans to replace CPOOL with CLEAR. If the proposal is passed, existing CPOOL holders will receive new tokens on a one-to-one basis.

Clearpool is entering its next stage of growth, expanding its business into XRP Ledger. XRPL is one of the oldest networks, but its institutional credit area is still largely underdeveloped. Clearpool aims to be natively built on top of XRPL and provide lending infrastructure with real-world application scenarios and meeting institutional standards.

Unlike a simple rebranding, the agreement closely ties token changes to plans to establish an institutional credit market on XRPL. Clearpool pointed out that the network was chosen because of its long operating history and what it describes as an "underutilized institutional lending market."

Under the proposed structure, Clearpool will develop credit products that leverage XRP Ledger to manage lending transactions and income opportunities. The agreement states that new users can obtain CLEAR by providing funds, while incentives currently paid in CPOOL will be transferred to alternative tokens.

At the heart of this expansion, there are two proposed XRPL standards: Single Asset Vaults (XLS-65) and Lending Protocol (XLS-66). Clearpool describes the pair of standards as "native, institution-level credit rails" that directly support lending products on the ledger.

Single-asset vault allows funds from multiple participants to be pooled under established management rules. XLS-66 will use the liquidity of these vaults to issue, service and repay fixed-term loans, while participating institutions will evaluate borrowers and set credit terms offline.

The company said: "The infrastructure for institutional credit is in place. Our intention is to be the layer that runs on top of it."

However, mainnet use still depends on the XRPL amendment process. An institutional-level RLUSD credit fund announced in August was being tested on the development network because XLS-65 and XLS-66 had not yet completed the validator approval process at the time.

Ripple's support connects XRP and RLUSD to lending

Under the proposal, Ripple has committed to investing in Clearpool products that will provide revenue opportunities from using XRP and Ripple USD (RLUSD). The investment amount cited in the document was not disclosed.

This commitment builds on an earlier arrangement between Ripple, Clearpool and Cicada Partners. Under this model, the fund will provide fintech and payment companies with working capital loans denominated in RLUSD-denominated, and approved borrowers and repayments will use stablecoins to receive and repay funds.

Cicada is responsible for finding borrowers, setting loan terms and managing credit risk, while Clearpool provides the infrastructure to create and operate credit pools. Ripple will join the fund as a limited partner on the same terms as other investors, but there is no guarantee of losses.

Using RLUSD as a loan asset separates the role of stablecoins from the network functions of XRP. RLUSD will flow between lenders and borrowers, while XRP will continue to pay transaction fees and support reserve requirements for ledger accounts.

This lending model is also different from many DeFi agreements, which typically require borrowers to deposit more collateral than the amount borrowed. Under XLS-66, approved institutions can arrange fixed-term credit after offline borrower review, with loans generated by ledger recording and management work.

Clearpool said its proposed XRPL expansion plan will build on that once XRPL's treasury and lending vehicles are available. However, products that rely on native standards cannot run on the main network until they are approved by the validator.

CPOOL holders will receive 70% of CLEAR's supply.

In addition to the XRPL plan, Clearpool also proposes to inject capital into its treasury because 99% of CPOOL's supply has been vested and reserves set aside for growth have been exhausted. The agreement says additional resources are needed to fund development, attract capital and support adoption.

Existing holders will receive 70% of the new CLEAR allocation through a 1:1 migration. The other 10% will be spent on the ecosystem, 15% will go to the national treasury, and 5% will be distributed to contributors.

At the time of migration, the proposal will increase the token supply from the current 1 billion CPOOL to 1.125 billion CLEAR. The planned unlocking schedule will increase the supply of CLEAR in circulation to 1.428 billion over three years.

Therefore, additional tokens will not enter circulation at one time. Distribution will follow the proposed attribution schedule, and current holders will receive relocation allocation quotas based on the number of CPOOL they own.

Clearpool also proposes to use half of the agreement fee to purchase CLEAR on the open market. Tokens purchased through the project will be permanently destroyed, and supply will be reduced accordingly as the agreement collects fees from its products.

Both the new allocation mechanism and repurchase mechanism require governance approval. The proposal will not automatically implement the CPOOL to CLEAR conversion until token holders vote.

RLUSD introduces New York-regulated settlement assets

For U.S. users and institutions, RLUSD provides a regulated U.S. dollar settlement component for planned lending systems. Standard Custody & Trust Company (a subsidiary of Ripple) issued the stablecoin under a limited purpose trust charter supervised by the New York State Department of Financial Services.

Ripple stated that RLUSD is backed by cash and allowed cash equivalents placed in segregated reserve accounts. Eligible reserve assets include short-term U.S. Treasury bonds, government money market funds, overnight repo agreements and bank deposits.

The market value of the stablecoin exceeded the US$2 billion mark in August this year, less than two years after its release in December 2024. Near this milestone, approximately $963 million of RLUSD was issued on XRPL and approximately $1.05 billion was issued on Ethereum.

Since RLUSD is designed to remain around US$1, the increase in its market value mainly reflects the issuance of new tokens rather than the price increase. If Clearpool's planned XRPL product goes online, the proposal would allow stablecoins to play a new role in lending and clearing assets.

The governance process begins with a proposal on the Snapshot platform. Clearpool provides a 14-day community discussion period before matters are submitted to token holders for voting.