RippleX Head of Product Jazzi Cooper made a bold declaration this week. Using XRP as collateral for institutional credit, she said, represents a genuine “killer use case” for the token.
Responding directly on X, Cooper confirmed the framing. She noted it is fully enabled by the XLS-65 and XLS-66 lending protocol, now live on the XRP Ledger.
What the Lending Protocol Actually Unlocks
The declaration marks a shift beyond XRP’s traditional role in cross-border payments. Market makers and institutional traders can post XRP as collateral to secure credit lines without liquidating their positions.
The protocol introduces native fixed-term, fixed-rate lending through Single Asset Vaults. That structure, in turn, lets institutions treat XRP as productive working capital. Institutions still retain full control over underwriting and compliance decisions off-chain.
Commentator Bill Morgan expanded on the significance. He noted the use case was not even possible before the SEC lawsuit against Ripple concluded. It only became viable, in other words, once the lending protocol launched on XRPL.
Morgan pointed to Ripple Prime, which already accepts XRP as eligible collateral alongside Bitcoin, RLUSD, fiat, gold, and treasuries.
A September 8 SEC filing from Charles Schwab adds further evidence of institutional uptake. The filing shows XRP ETFs are increasingly used as repo collateral, with usage growing rapidly.
Infrastructure and Momentum Continue Building — Will XRP Price React?
Development keeps advancing on schedule. XRPL validators confirmed that Lending Protocol v1.1 will ship with XRPL version 3.4.0 next week, bringing fixes and improvements to Single Asset Vaults. The official amendment tracker currently lists the update as in development.
Institutional partners are already positioning around the infrastructure. Clearpool has originated more than $930 million in institutional loans, while Cicada Partners has underwritten over $860 million, giving the ecosystem a combined track record of nearly $1.8 billion ready for deployment on XRPL.
RLUSD’s market cap, near $2.42 billion, adds a complementary layer of liquidity to that setup. As these native credit rails mature, XRP is transitioning from a pure bridge asset into a core institutional collateral instrument, precisely the utility Cooper described.
At the time of writing, XRP trades near $1.37. Technical analyst Crypto Patel argues bulls face one clear task: reclaiming the $1.55 resistance level to avoid a deeper retracement.
A weekly close above that level would open a path toward $2 and eventually the $3.66 all-time high, according to Patel’s analysis. Failure to break higher could send the price back toward the $0.70-$0.95 demand zone.
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