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Using XRP as collateral for institutional credit is a killer use case for the token, according to RippleX Head of Product Jazzi Cooper. Cooper shared on the X social network that this functionality is fully supported by the XLS-65 and XLS-66 lending protocols currently active on the XRP Ledger.
Institutional Credit Integration on the XRP Ledger
The implementation of native lending protocols marks a distinct shift beyond XRP’s traditional role in cross-border settlements. According to details shared by Cooper, market makers and institutional traders can post XRP as collateral to secure credit lines without liquidating their underlying positions. The system introduces native fixed-term and fixed-rate lending through Single Asset Vaults, allowing institutions to treat XRP as productive working capital. Financial institutions retain full control over off-chain underwriting and compliance decisions.
Legal and market commentator Bill Morgan noted that this specific use case was not viable before the conclusion of the Securities and Exchange Commission lawsuit against Ripple, becoming practical only after the deployment of the lending protocol on the XRP Ledger. Morgan pointed to Ripple Prime as an active platform accepting XRP as eligible collateral alongside Bitcoin, RLUSD, fiat currency, gold, and treasury securities. Further evidence of institutional adoption appeared in a September 8 SEC filing from Charles Schwab, which showed that XRP exchange-traded funds are seeing rapidly growing usage as repo collateral.
Infrastructure Upgrades and Ecosystem Momentum
Technical development continues on schedule across the network. XRP Ledger validators confirmed that Lending Protocol v1.1 will ship with version 3.4.0 of the XRP Ledger, introducing code fixes and performance enhancements for Single Asset Vaults. The official network amendment tracker currently lists this upgrade in development.
Institutional partners are scaling their operations around this new infrastructure. Having facilitated over $930 million in institutional loans via Clearpool and more than $860 million through Cicada Partners, the ecosystem brings a collective track record of nearly $1.8 billion ready for deployment on the XRP Ledger. Additionally, the market capitalization of Ripple USD (RLUSD) sits near $2.42 billion, adding a complementary layer of liquidity to the network setup.
XRP Market Performance and Technical Levels
As these native credit rails evolve and mature, the token is shifting away from its function strictly as a bridge asset to become a primary instrument for institutional collateral. At the time of publication, XRP trades near $1.37.
Technical analyst Crypto Patel stated that market bulls face a clear objective to reclaim the $1.55 resistance level to avoid a deeper price retracement. According to Patel, a weekly close above $1.55 would open a path toward $2 and eventually test the all-time high of $3.66, while a failure to break higher could push the token back into the $0.70 to $0.95 demand zone.