Overview
- Edward Hennis described a protocol-native system on XRPL for underwritten credit with fixed terms and fixed rates.
- Each loan would reside in a Single Asset Vault holding one asset such as XRP or RLUSD to segregate counterparty risk.
- Pool admins would act as underwriters and operators of the vaults, while third-party platforms could build user interfaces on top.
- Targeted uses include market-maker inventory and arbitrage funding, RLUSD pre-funding for instant merchant payouts, and short-duration working capital for fintech lenders.
- XRP holders could lend into institutional credit facilities to earn yield, with relevant XRPL amendments expected to enter validator voting in late January.