Disclaimer: Content does not constitute investment advice. Trading involves risks—please invest with caution!

Ripple gives XRP a new role

2026-09-14 20:45:07

Bookmark

Institutional credit: A key missing link in on-chain finance

Despite the growing interest of financial institutions in blockchain-based capital markets, institutional credit is still largely underutilized in the on-chain finance field. Jazzi Cooper, product leader at Ripple, believes that this gap presents huge opportunities for $XRP and XRP Ledger (XRPL). Cooper pointed out that the network has completed its core stages of development of representation, transfer and transaction value. The next step, she said, is to "make value generate financial utility." This impetus is aimed at real-world asset markets, where tokenized treasury bonds, money market funds, stablecoins and private credit already exist on the chain, but there is still a lack of appropriate financing instruments. Ripple defines this gap as the difference between issuing assets on the chain and making those assets truly function as liquidity, working capital and credit markets.

How XRPL Loan Agreement works

Lending agreements are a DeFi basic component of XRP Ledger that leverage pooled funds in a single asset vault to enable on-chain, fixed-term, unsecured loans. A single asset treasury aggregates liquidity and issues treasury shares. Depending on the configuration, these shares can be transferable or non-transferable. This structure provides institutions with a familiar model of credit facilities built on top of public blockchain infrastructure. Its implementation relies on off-chain underwriting and risk management to assess the borrower's credit status, while providing point-to-point loans that do not require intermediaries such as banks. All loan events, including issuance and repayments, are recorded on-chain, providing real-time audit capabilities, simplified accounting processes, and stronger compliance reporting. Ripple is also committed to building partnerships to improve institutional lending infrastructure. In August 2026, Ripple joined an initiative launched by Cicada Partners and Clearpool to bring institutional lending services to XRP Ledger. A software update is adding momentum. XRPL verification node Vet confirmed that Lending Agreement v1.1 is expected to be released next week with XRPL 3.4.0, bringing fixes and improvements to the first version and continuing to advance the work of a single asset vault. The official XRPL amendment tracker currently lists LendingProtocolV1_1 as "under development", which improves the XLS-66 lending specification, including changes such as adding the MemoData field to VaultDelete transactions. Approval of verification nodes remains a key obstacle before any functionality is enabled on the primary network. Currently, the amendment to the loan agreement is open for voting, and 31.43% of verification node tokens have participated in the voting, far below the 80% threshold required for activation. Despite this, XRPL verification node Vet said the loan agreement and single asset treasury amendments will continue to receive regular updates, describing them as "dynamic feature agreements that add functionality over time."

Disclaimer:

All content published on this website, including hyperlinks, related applications, forums, blogs, and other media accounts, originates from third-party platforms and their users. CoinMarketInsight makes no representations or warranties of any kind regarding the website or its content. All blockchain-related data and materials are provided for informational and research purposes only and do not constitute financial, legal, or investment advice. Users and third parties are solely responsible for the content they publish. CoinMarketInsight shall not be liable for any losses arising from the use of this website. You should exercise caution and conduct your own independent research, review, analysis, and verification before making any decisions.

Read Full Article

0.00% 0.00%

Bullish

Bearish

Hot Coins