Ripple President Monica Long said at XRP Seoul on October 3 that the company is testing a credit model that could use XRP as collateral for payment financing, with pilots targeted for activation in 2027. Under the concept, XRP deposited into lending-protocol liquidity pools could back customers’ payment obligations, creating a longer-lived use for the token than rapid settlement.
The model would differ from XRP’s traditional bridge-asset role, where tokens can move through a payment and return to circulation within seconds. If XRP is pledged as collateral for credit, it could remain committed for the duration of a loan, meaning the approach may create a new source of locked-token demand while expanding the institutional credit role of Ripple and XRP.
The initiative remains in pilot testing and has not been announced as a live commercial product. The next milestone is whether Ripple activates the credit pilots in 2027 and connects them with XRPL lending infrastructure at scale, which would show whether collateralized XRP can become a practical financing tool for payment customers rather than only a settlement asset.
Source: XRP Seoul.
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