Ripple is banking on the XRP Army’s trust.
That’s the upshot of the firm’s new lending market that will allow holders of the $163 billion XRP token to lend it out and earn yield directly on the XRP Ledger blockchain.
The loans will be uncollaterialised, managed by onchain contracts, and are part of Ripple’s push to drive adoption of decentralised finance on XRPL.
“If there’s one large untapped asset that the XRP Ledger has, it’s the XRP Army,” Jasmine Cooper, Ripple’s director of product, told DL News. “There are tens of thousands of XRP holders out there that do not have an opportunity to gain yield on that XRP.”
The XRP Army refers to a loose group of retail investors who staunchly support Ripple and the XRP token.
“For institutions, the appeal is clear: no financial institution will turn down low cost capital if it can be sourced within know-your-customer and anti-money laundering standards,” Ripple said in an overview of the planned lending market shared with DL News.