Ripple, a leading cryptocurrency and payment solutions company, has announced a partnership with Clearpool and Cicada Partners to build a new lending and credit trading infrastructure for institutional investors on the XRP Ledger (XRPL).
Japanese Translation:
Real Yield: Institutional Lending Comes to XRPL
Joint Announcement by Ripple, CicadaCredit, and ClearpoolFin
DeFi Yield Faces Credibility Issues
Currently, about 98% of yields in DeFi come from loop trading, arbitrage trading, basis trading, and point trading...
This initiative aims to introduce "real economy yields" backed by real-world business activities on-chain, distinguishing itself from traditional DeFi yields driven by leverage and trading incentives.
In this project, three companies with expertise in various fields have established a robust collaborative framework.
Clearpool (Infrastructure Provider):
Leveraging a cumulative loan brokerage record of over $930 million (approximately ¥147.8 billion), Clearpool will build a credit trading layer utilizing XRPL's Lending Protocol and Single Asset Vault.
Cicada Partners (Review and Management):
With a background of underwriting achievements amounting to $860 million (approximately ¥136.68 billion), Cicada will handle risk management, including borrower selection, loan condition setting, and financial monitoring as a fund manager.
Ripple (Funding Provider):
Ripple will invest in the fund as a limited partner (LP investor) on par with other institutional investors, rather than as the ultimate loss cover provider.
The funding base for the loans will utilize Ripple's USD-pegged stablecoin "RLUSD," which operates under the regulation of the NYDFS (New York State Department of Financial Services) and is custodied by major financial institution BNY.
The raised funds are planned to be used as working capital for fintech companies, payment service providers, and cryptocurrency service providers. Additionally, XRP will be used for a series of payment processing and network fees, which is expected to enhance transaction activity across the ecosystem and the utility of XRP.
To address compliance concerns faced by traditional DeFi, the project will utilize compliance designs such as permissioned domains and credentialing, as well as asset recovery (Clawback), which are native features of XRPL. This will enable strict management of participation qualifications and risk control.
Currently, various protocol proposals necessary for this functionality are at the governance voting stage within the community, and integration testing and technical demonstrations by Clearpool are underway on the developer network (Devnet) in preparation for official operation on the mainnet.
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