Ripple develops the RLUSD lending ecosystem, enabling institutional credit funds to extend loans to fintech firms.

Ripple is backing a new institutional credit fund, which will partner with lending platform Clearpool and credit management firm Cicada Partners to offer working capital loans to fintech and payment companies using Ripple-issued stablecoin RLUSD on the XRP Ledger. Per disclosures, the fund will disburse loans denominated in RLUSD. Cicada Partners will source borrowers, set loan terms and manage credit risk; Clearpool will build the infrastructure for creating and managing lending pools; Ripple is participating as one of the investors, though its exact investment size has not been disclosed. The product is not yet live on the XRP Ledger mainnet. Ripple will participate as a limited partner, with the same terms as other investors, and does not assume loan loss guarantee obligations. Borrowers will receive and repay loans in RLUSD, which will boost demand for the stablecoin while bringing lending activity to the XRP Ledger.