Ripple CEO Details XRP Lending Via Treasury Deployment
Ripple expands XRP utility into institutional lending through Evernorth treasury integration and ledger upgrades.
1Institutional Lending Strategy Shift
Ripple CEO Brad Garlinghouse announced a strategic pivot toward institutional lending products. Moving beyond the traditional buy-and-hold model, the company aims to leverage its role as a liquidity provider. This shift aligns with Ripple’s core vision of enabling information and value to move with the same efficiency as digital currency transfers.
2Evernorth Treasury Fund Integration
Ripple has contributed significant XRP tokens to Evernorth, a corporate treasury fund valued at nearly $500 million. This fund is debuting on the NASDAQ following a merger with Armada Acquisition Corporation. The initiative provides investors with regulated, transparent exposure to XRP through a public vehicle rather than requiring direct token ownership.
3Regulatory Milestone and Approval
The NASDAQ listing follows a critical legal milestone achieved on September 30. Shareholders of Armada Acquisition Corp. II unanimously approved the merger, and the corresponding Form 8-K was filed with the SEC. This regulatory compliance is essential for Evernorth’s founder Asheesh Birla to offer institutional-grade access to the XRP ecosystem.
4Lending Protocol Technical Upgrades
The XRP Ledger is preparing for two major technical upgrades to facilitate lending. The XLS-65 proposal creates single-asset pools, while XLS-66 introduces support for fixed-term loans. As of October 15, 2026, validator support for these critical upgrades reached 60% and 54% respectively, signaling strong network consensus for the new lending functionality.
5Risk Management and Controls
The proposed lending framework incorporates high-level risk controls specifically designed for corporate investors. Borrower verification processes remain off-chain to maintain operational efficiency. Additionally, the protocol offers optional first-loss reserves, which are intended to cover initial loan losses, providing a layer of security that mirrors traditional financial institutional standards for credit.
6Expanding the XRP Ecosystem
Ripple’s technology stack, which underpins these new lending capabilities, has already seen adoption by Standard Chartered. Garlinghouse emphasized a belief in a multi-chain world while maintaining XRP as the centerpiece of the ecosystem. This approach aims to transform the ledger from a simple payment rail into a robust credit infrastructure.
7Capital Efficiency and Utility
The new lending protocol seeks to put idle capital to work by allowing users to pool assets and collateralize value. By extending credit and settling payments on-chain, Ripple intends to move beyond simple value transfers. This mechanism creates a comprehensive financial loop where capital is utilized, payments are settled, and loans are repaid.
8Future Market Implications
The transition from payments to credit represents a significant evolution for the XRP Ledger. By integrating with public treasury funds and implementing institutional-grade risk controls, Ripple is positioning itself to capture broader market segments. The success of these upgrades will determine the long-term viability of XRP as a foundational asset for decentralized credit.
Original article: DailyCoin — Ripple CEO Details XRP Lending Via Treasury Deployment