XRP Lending Infrastructure Takes Shape, Enabling Borrowing Without Selling

XRP analysts believe that a new lending infrastructure on the XRP Ledger could allow holders to borrow against their tokens without selling them. James Dula, an XRP analyst, points out that Coinbase's recent addition of XRP as eligible collateral for crypto-backed loans is just one part of this emerging financial model.

According to Dula, investors can already use their XRP tokens as collateral for loans through Coinbase. For example, if an investor holds 10,000 XRP worth about $1 million (assuming an XRP price of $100), they could pledge 2,500 XRP valued at around $250,000 and borrow about $120,000 in USDC without selling their XRP.

The transaction would be treated as a loan rather than a sale, meaning it would not trigger a taxable capital gains event. This allows investors to keep exposure to potential future XRP price gains while still accessing liquidity.

Dula also highlights the recent completion of the first Fannie Mae-backed mortgage in the United States using Bitcoin as collateral. While XRP is not supported under this program, he believes similar structures could eventually be expanded to include XRP.