Clearpool has proposed moving its institutional lending products to the XRP Ledger (XRPL), replacing CPOOL with CLEAR in a one-to-one migration and recapitalising its treasury.
If approved, 70% of CLEAR’s initial allocation would be used to convert existing CPOOL holdings. The protocol also plans to develop credit products based on XRPL’s proposed Single Asset Vaults and Lending Protocol standards, while Ripple has committed capital for yield products denominated in XRP and RLUSD.
Clearpool described the plan as the protocol’s “next growth phase”, linking the token change to the development of institutional credit markets on XRPL rather than presenting it as a standalone rebrand.
“XRPL is one of the most established networks, with institutional credit still largely untapped,” Clearpool said.
The proposed products would use XRPL to manage lending transactions and yield opportunities. Users providing capital could receive CLEAR, replacing incentives currently paid in CPOOL.
The expansion depends on two proposed XRPL standards: Single Asset Vaults, or XLS-65, and the Lending Protocol, XLS-66. Clearpool said they would provide “native, institutional-grade credit rails” for lending products on the ledger.
XLS-65 would pool funds from multiple participants under defined management rules. XLS-66 would use that liquidity to issue, service and repay fixed-term loans, while participating institutions would assess borrowers and set credit terms off-chain.
“The infrastructure for institutional credit is here. We intend to be the layer that runs on it,” Clearpool said.
The standards have not yet completed XRPL’s validator approval process. An institutional RLUSD credit fund announced in August was being tested on a development network, meaning products relying on XLS-65 and XLS-66 cannot yet operate on the main network.
Ripple support and RLUSD lending
According to the proposal, Ripple has committed investment to Clearpool products offering yield opportunities through XRP and Ripple USD. The amount was not disclosed.
The commitment follows an earlier arrangement involving Ripple, Clearpool and Cicada Partners. Under that structure, the fund would provide RLUSD working-capital loans to fintech and payment companies. Cicada would find borrowers, set terms and manage credit risk, while Clearpool would provide the infrastructure for the credit pools. Ripple would participate as a limited partner on the same terms as other investors and would not guarantee losses.
RLUSD would be transferred between lenders and borrowers, while XRP would pay transaction fees and support account reserve requirements on XRPL. Unlike many DeFi systems, the model would not require borrowers to provide collateral exceeding the amount borrowed. Approved institutions could receive fixed-term credit following off-chain reviews, with XRPL recording and managing the loans.
RLUSD is issued by Ripple subsidiary Standard Custody & Trust Company under a limited-purpose trust charter supervised by the New York State Department of Financial Services. Ripple says it is backed by cash and permitted cash equivalents held in segregated reserves, including short-term US Treasury bills, government money market funds, overnight repurchase agreements and bank deposits.
The stablecoin exceeded $2bn in market value in August, less than two years after its December 2024 launch. About $963m was issued on XRPL and $1.05bn on Ethereum at that time.
Token allocation and buybacks
Clearpool said 99% of CPOOL’s supply has vested and growth reserves have been used. Under the proposal, the current one billion CPOOL supply would become 1.125 billion CLEAR, with circulating supply rising to 1.428 billion over three years.
Existing holders would receive 70% of CLEAR, 10% would go to the ecosystem, 15% to the treasury and 5% to contributors. Clearpool also wants to use 50% of protocol fees to buy CLEAR on the open market and permanently burn the purchased tokens.
The migration, allocation and buyback plan require governance approval. The process began on Snapshot with a 14-day community discussion before a tokenholder vote.
