Ripple President Monica Long Reveals Ripple Is Doing With XRP

Ripple is exploring a new way to connect XRP with institutional financing as the company tests credit solutions for payment customers. Ripple President Monica Long said the firm is working on using loaned XRP as collateral to help fund short-term customer payment flows through the XRP Ledger’s lending infrastructure.

Long made the remarks during a fireside chat at the XRP Seoul event held during Korea Blockchain Week.

The approach could give payment providers and institutional customers access to short-term credit without depending entirely on traditional fiat-based financing.

XRP Could Support Short-Term Credit Lines

Under the proposed model, XRP deposited into lending pools could serve as collateral for credit facilities used by payment providers and institutional participants. Instead of selling XRP to obtain liquidity, eligible users could borrow against XRP held within the lending infrastructure.

The XRP Ledger lending architecture includes Single Asset Vaults and pooled liquidity under the XLS-65 and XLS-66 specifications. These features are designed to support lending activity directly on the ledger while allowing institutions to maintain their existing credit and risk-management processes.

Institutional underwriting would remain off-chain. Financial institutions could conduct credit checks, evaluate counterparties, and determine lending terms before approving a facility. Once established, the loan execution, repayment process, and enforcement of agreed terms could operate through the XRP Ledger.

Ripple is currently conducting credit-related pilots, with activation targeted for 2027.

Lending Could Expand XRP’s Role in Payments

The proposed lending model would introduce a different use of XRP alongside its established role in payment flows. Payment transactions can involve XRP moving between parties and being converted as part of settlement. Lending collateral, however, could remain deposited in vaults for longer periods while backing credit facilities.

This distinction could increase the amount of XRP committed to the lending infrastructure if institutions and payment providers adopt the model at scale. It could also connect payment activity with liquidity that remains on-chain for longer periods.

For payment providers, the model could address working-capital requirements created by settlement delays and pre-funding needs. Remittance companies and fintech firms could potentially access short-term liquidity against eligible XRP collateral instead of depending solely on conventional credit arrangements.

Long’s comments therefore place XRP Ledger lending alongside Ripple’s broader payment efforts. The pilots will determine whether institutions find the structure practical and whether the lending infrastructure can support payment-related credit at scale.