BlockBeats News, August 21st, Ripple is supporting a new institutional credit fund that will collaborate with the lending platform Clearpool and the credit management firm Cicada Partners to use Ripple's issued stablecoin RLUSD on the XRP Ledger to provide operating capital loans to fintech and payment companies.

According to the disclosure, the fund will issue loans denominated in RLUSD. Cicada Partners will be responsible for finding borrowers, structuring loan terms, and managing credit risk; Clearpool will be responsible for building the infrastructure for creating and managing the lending pool; Ripple will participate as one of the investors providing funding support, but the specific investment amount has not been disclosed.

Currently, this product has not yet launched on the XRP Ledger mainnet. Ripple will participate as a limited partner, enjoying the same terms as other investors and not bearing the guarantee responsibility for loan losses. Borrowers will receive RLUSD and repay the loan in RLUSD, which will drive the demand for this stablecoin and introduce lending activity to the XRP Ledger.