Ripple joins Clearpool, Cicada to launch institutional RLUSD credit fund

Ripple has backed a new institutional credit fund that will issue RLUSD working-capital loans to fintech and payments companies through the XRP Ledger, with Clearpool and Cicada Partners handling the lending infrastructure and credit management. Summary Ripple is backing a new fund that will provide RLUSD working capital loans to fintech and payments companies. Cicada Partners will source borrowers and manage credit risk, while Clearpool is building the lending infrastructure. The fund is still being tested as the XRP Ledger lending and vault features await mainnet approval. Ripple will participate as a limited partner and will not guarantee investor losses. CoinDesk reported on Aug. 21 that the fund will provide loans denominated in Ripple USD (RLUSD), while Cicada Partners will source borrowers, set lending terms and oversee credit risk. Clearpool is developing the infrastructure needed to create and manage the credit pools, with Ripple joining other institutions as an investor. The companies did not disclose the planned size of the fund or the amount Ripple has committed. Under the structure, Cicada will serve as the fund’s general partner and credit-pool manager. The firm said ...