Ripple backs institutional credit fund using RLUSD for fintech lending on XRP Ledger

BlockBeats reported on August 21 that Ripple is backing a new institutional credit fund. The fund will work with lending platform Clearpool and credit manager Cicada Partners to provide working-capital loans to fintech and payments companies on the XRP Ledger using RLUSD, the stablecoin issued by Ripple. The funding will be denominated in RLUSD, according to the disclosure. Borrowers will receive RLUSD and repay their loans in RLUSD. Cicada Partners will be responsible for sourcing borrowers, setting loan terms and managing credit risk. Clearpool will provide the infrastructure used to create and manage lending pools. Ripple is contributing capital as one of the investors, but the size of its investment has not been disclosed. The company will take part as a limited partner, on the same terms as other investors, and will not guarantee loan losses. The product has not yet gone live on the XRP Ledger mainnet. If launched, it would bring lending activity onto the network and use RLUSD in both loan origination and repayment.