Overview
- Clearpool, Ripple and Cicada disclosed a joint plan to create an institutional credit fund that issues loans denominated in Ripple USD (RLUSD) and to build native lending rails on the XRP Ledger.
- The design embeds two proposed protocol changes—XLS‑65 Single Asset Vaults for pooled capital and XLS‑66 Lending Protocol for fixed‑term loans—to run issuance, repayments and accounting on‑chain while keeping borrower underwriting off‑chain under Cicada’s control.
- Security work includes formal verification by RippleX/Common Prefix and a Halborn re‑audit that found no critical or high‑risk issues but reported one medium‑severity finding about a way loan interest could bypass a vault’s maximum‑assets limit plus two low and two informational findings that were addressed or accepted.
- Ripple will invest as a pari passu limited partner without providing a special loss backstop, Clearpool is testing the end‑to‑end flow on XRPL Devnet and Cicada will act as the fund’s credit manager.
- The project was announced on Aug. 20–21 and cannot operate on XRPL mainnet until independent validators approve XLS‑65 and XLS‑66, a step that will determine whether RLUSD gains a new institutional use and whether lenders and borrowers can begin live activity.