The XRP Ledger is currently voting on XLS-65 and XLS-66, a pair of proposals that would enable institutional credit using XRP as collateral and Ripple USD (RLUSD) as the settlement asset. The vote has reached a quorum exceeding 30%, and XRP has risen by more than 4% in the past 24 hours. The development raises the question of whether this upgrade will unlock significant liquidity for holders who have previously been unable to use their assets on-chain.
Evernorth, a digital asset treasury focused entirely on XRP, has stated its intention to use this feature if the proposal is passed. The company holds over $600 million worth of XRP that it cannot currently use as collateral without leaving the XRP Ledger. The proposal could unlock billions in untapped liquidity, allowing for further monetization of these holdings.
Clearpool, a DeFi protocol that has facilitated over $900 million in on-chain loans for institutions, recently proposed a full migration to the XRP Ledger to tap into this institutional credit segment. Simultaneously, the market cap of Ripple USD, the network's native stablecoin, surged to a new all-time high of $2.4 billion. This growth has allowed Ripple USD to take the 10th spot in the stablecoin market from Ondo Finance's USDY. If the trend continues, Ripple USD could soon surpass PayPal USD (PYUSD) and BlackRock's BUIDL.
Technical indicators suggest the market is in a consolidation phase. On the daily chart, XRP has tagged the upper bound of a bull flag pattern that emerged following its latest rally. This setup typically indicates a pause before the previous trend resumes. For the rally to continue, the price must break past $1.40. Trading volumes have risen by 120% today as the proposals are voted on.
Analysts note that if the proposals are passed, XRP may resume its rally toward a near-term target of $1.80. A mid-term target of $2.10 is projected based on the size of the flag's pole, assuming positive momentum accelerates. The downward slope of the flag indicates that sellers are currently outpacing buyers, but the $1.32 support level has held firm. As long as this key demand zone remains intact, conditions favor the continuation of XRP's rally in the coming weeks.
Broader macro factors also influence the asset's trajectory. The U.S. Senate is subject to procedural voting on the Clarity Act this week; if passed, the bill will be sent to the floor for a final vote. Additionally, the Federal Reserve will decide on interest rates on Wednesday. FedWatch data shows that close to 90% of analysts anticipate a 25 basis point rate hike this month, though remarks from Federal Reserve head Kevin Warsh could still shift market expectations.