Ripple Plans a Credit Business Backed With XRP. Does Lending Finally Give the Token a Use That Moves the Price?

Ripple plans to introduce a credit service in 2027 that uses XRP (CRYPTO: XRP) as collateral for payment loans, according to Ripple President Monica Long, who spoke at the XRP Seoul conference on October 3, 2026. “We are running credit-related pilots with the goal of activation next year,” Long stated.

Unlike most Ripple products, which let banks and payment firms use the technology without holding the token, this new credit initiative requires locking XRP in lending pools. This brings up an important question: will lending provide a meaningful use for XRP that influences its price?

Ripple Plans to Use XRP as Collateral for Payment Loans in 2027

This new service will primarily serve Ripple’s payment customers, particularly money transfer companies that often require short-term cash to make payments before their own funds arrive. Under this plan, XRP will be placed in lending pools to back the loans that facilitate these payments. Long mentioned that tokenized funds could ensure “24-hour collateral access and real-time borrowing.”

Ripple is aiming to integrate its services. Long emphasized the company’s goal to connect “payments, credit, the XRP Ledger, and lending protocols,” noting that Ripple ran a successful pilot on the XRP Ledger’s built-in exchange in 2026 and plans to expand in 2027.

However, Ripple has provided no specifics on the size of the lending pools, the identities of potential lenders, or any dates beyond 2027. Additionally, Ripple has yet to disclose the interest rates that borrowers will pay or the currencies in which repayments will occur.

XRP Collateral Locks Up Coins, Unlike Payments That Pass Straight Through

While XRP payments generally do not significantly impact its price, this credit model works differently. In standard payment scenarios, a payment firm buys XRP with dollars, sends it quickly across the XRP Ledger, and converts it back to local currency, which means the coins change hands without being held long-term. As a result, XRP’s value often relies more on investors holding the token than on actual payment volume.

In contrast, using XRP as collateral means that the tokens remain locked until the borrower repays the loan, which can take weeks or even months. If lending activity increases, more XRP would be taken off the market for extended periods, which could create more sustained demand and potentially increase its price.

Some institutions have already begun holding XRP for the long term. For example, Evernorth has built a treasury of 473 million XRP in preparation for its planned Nasdaq listing, and new lending pools could add even more holders who are less likely to sell their tokens.

Ripple Lent Around XRP Payments in 2020, and Holders Are Still Waiting

Ripple has experimented with lending before. In October 2020, the company launched a line of credit that let payment firms borrow funds to buy XRP for its cross-border payment services, funded by Ripple’s own XRP reserves. While this initiative increased payment volume, it did not lead payment firms to hold significant quantities of XRP.

The origin of the XRP in these lending pools will also determine how much they contribute to the market. If Ripple fills these pools with XRP it already owns, the market may not see any new buying activity, as the coins would merely shift from one Ripple wallet to another. Genuine demand would arise only if external lenders purchased XRP on the open market to contribute to these pools.

XRP holders have been awaiting this kind of demand for a while. As of October 4, XRP is trading at $1.50, down approximately 50% over the past year and 59% below its all-time high of $3.65. This means that many XRP holders from the past year are at a loss, despite a steady stream of positive news around Ripple’s partnerships.

Does Ripple’s XRP Credit Plan Give the Token a Use That Moves the Price?

It’s possible—this plan stands out from much of the recent news about Ripple. By using XRP as collateral, the model locks up more coins for the duration of each loan, creating the kind of demand traditional payment processes haven’t.

However, some uncertainty remains: the service isn’t expected to launch until 2027, and Ripple hasn’t defined the size of these lending pools or whether Ripple will fund them with its own holdings rather than new buyers.

The specific details Ripple shares before the launch could be pivotal. If Ripple announces external lenders, substantial pool sizes in the billions of XRP, and commitments to buy on the open market, the new credit service could indeed bolster XRP’s price in 2027. Conversely, if the pools are relatively small or rely solely on Ripple’s own XRP, the credit business might generate fees for Ripple while XRP remains influenced by broader market fluctuations.

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