Jazzi Cooper, Head of Product at Ripple, confirmed publicly that XRP as collateral for institutional credit is a “killer use case” and that the XLS-65/66 lending protocol supports it.
The statement generated significant attention across the XRP community. For a protocol still awaiting validator approval, the endorsement from a senior Ripple executive carries weight.
Cooper’s statement clarifies a question the community has debated for months. XRP’s role within the XLS-65/66 framework has not always been obvious. The protocol was designed primarily with RLUSD as the lending asset, and XRP’s position as collateral was technically optional. Cooper’s post signals that Ripple sees active institutional demand for XRP in that role.
Yes – XRP as collateral for institutional credit is a killer use case (and supported by xls65/66 lending protocol!)
— Jazzi Cooper (@jazzicoop) September 11, 2026
What the Lending Protocol Enables
XLS-66 introduces fixed-term, uncollateralized loans on the XRP Ledger using pooled funds from Single Asset Vaults, defined by XLS-65. Creditworthiness assessments happen off-chain. Institutions apply their own underwriting and risk models. The ledger then enforces repayment terms, interest accrual, and settlement.
This architecture mirrors traditional institutional credit markets, where unsecured lending is standard. The XLS-65 vault structure isolates risk per asset. Liquidity providers deposit into a vault and earn yield. Loan brokers authorized by the vault originate fixed-term loans with pre-set amortization schedules.
XRP as Collateral in This Stack
Cooper’s confirmation points to a specific application. Institutions holding XRP can post it as collateral to access on-chain credit facilities. This gives XRP a productive function beyond speculative holding or transaction fees. It positions XRP similarly to how Treasuries or other liquid assets function in traditional repo and credit markets.
The Ripple-backed credit fund involving Clearpool and Cicada Partners is already structured around this model. It uses XLS-66-governed facilities to lend RLUSD to fintech and payments firms. With XRP as accepted collateral, institutions holding the asset gain direct access to that liquidity.
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The Current Position
Cooper’s post does not finalize anything. The amendments still require validator approval. The credit fund still awaits mainnet activation. However, a public confirmation from Ripple’s Head of Product carries more weight than community speculation. It establishes an official product direction.
Institutions evaluating the XRP Ledger now have a clear signal about where Ripple intends to take the protocol. The next milestone is validator consensus, and that outcome will determine whether this use case moves from intention to execution.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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