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XRP could be used as collateral for institutional loans via new XRP Ledger credit models.

Protocol Fundamentals
13 Sep 2026
Coinpaper
View Source
Bullish
XRP could be used as collateral for institutional loans via new XRP Ledger credit models.

RippleX's Head of Product, Jazzi Cooper, highlighted XRP as a promising collateral asset for institutional credit using the XRP Ledger's lending architecture (XLS-65 and XLS-66). This approach would allow institutions to borrow stablecoins like RLUSD without selling XRP, similar to traditional collateral transformation. However, the lending protocols are still under development and require governance approval before full implementation. The system currently lacks automated collateral liquidation, meaning additional risk management structures are needed for XRP-backed loans. This development could make XRP a productive asset on institutional balance sheets rather than just a tradable token.

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