Ripple wants institutions to borrow against tokenized assets on XRPL
CoinDesk 2026-06-29 15:00:00
Context: Ripple is proposing a new standard for its XRP Ledger (XRPL) that would enable institutions to borrow against tokenized assets, with the XRPL blockchain enforcing the loan terms. This proposal aims to streamline lending processes by leveraging the XRPL's decentralized nature while maintaining human oversight for credit underwriting. The proposal requires validator approval to take effect.
Key Facts
- Ripple's proposed XRPL standard would allow institutions to borrow against tokenized assets, with the XRPL blockchain enforcing loan terms, thereby automating certain aspects of the lending process.
- The underwriting for these loans would still be handled by human credit teams, ensuring that credit decisions and risk assessments remain with experienced professionals.
- The proposed standard is designed to operate on the XRP Ledger (XRPL), a decentralized blockchain that enables fast and secure transactions, making it an attractive platform for such financial applications.
- If approved, this standard would need to receive validation from the XRPL community, a process that ensures changes to the ledger align with the interests of its users and stakeholders.
- The proposal reflects Ripple's efforts to expand the use cases for its XRPL, particularly in the realm of traditional finance and institutional adoption of blockchain technology.