An analysis said that if lending infrastructure based on the XRP Ledger (XRPL) is built, XRP holders could adopt a new borrowing strategy that allows them to borrow funds using their tokens as collateral without selling them.

On July 2 local time, blockchain outlet The Crypto Basic reported that XRP analyst James Dooly (제임스 둘라) recently argued that a new financial model for long-term holders could emerge if Coinbase’s XRP-backed loans, a government-guaranteed crypto mortgage structure and proposals for XRPL lending functions come together.

The key is a structure that secures liquidity without selling XRP. Dooly noted that earlier this year Coinbase included XRP among assets eligible for collateral loans, allowing holders to take crypto-backed loans using their tokens as collateral. He explained that such transactions are treated as loans rather than sales, meaning they do not trigger a capital-gains tax event while still keeping exposure to potential future gains in XRP prices.

He also presented a hypothetical example. If XRP is assumed to trade at $100, an investor holding 10,000 XRP could pledge 2,500 XRP as collateral and borrow about $120,000 in USDC based on a loan-to-value ratio of about 49%, the calculation showed. Under the structure, the holder secures cash without disposing of XRP.

From a market perspective, Dooly focused on scalability beyond collateral loans. He cited a recent case in which Better Home & Finance and Coinbase completed the first U.S. Fannie Mae-guaranteed mortgage using bitcoin as collateral. The structure combines a traditional home mortgage with a separate crypto collateral loan to fund a down payment. In particular, the bitcoin posted as collateral is not automatically liquidated even if its price falls, as long as the borrower continues mortgage repayments.

However, the program does not yet support XRP. Even so, Dooly viewed it as an example of the expansion of crypto-collateral finance and projected that a similar structure could eventually be applied to XRP.

The key question is whether proposed lending functions on the XRPL will be introduced. Dooly said that if XRPL lending functions including XLS-66d are realised, the range of XRP use could broaden. In his scenario, XRP not used as collateral is deposited in a Single Asset Vault to provide liquidity to institutional borrowers and earn interest income.

He also presented a return structure. Assuming an annual yield of 4 to 7 percent, the calculation showed that 7,500 XRP not tied up as collateral could generate annual income of $30,000 to $52,000. By contrast, the borrowing cost on XRP pledged as collateral is estimated at an annual 3.2 percent, or about $3,800. Dooly said returns on the remaining XRP could exceed the cost of maintaining the loan, making it possible to offset borrowing costs while holding a long-term position.

The concept is not immediately ready for execution. Dooly also acknowledged that collateral loans, institutional liquidity pools and yield-generating asset vaults are gradually being built as infrastructure in digital asset markets, while some XRP-specific functions including XLS-66d remain at the proposal stage and are not yet offered. As a result, the feasibility of XRP-based borrowing strategies is expected to hinge on the scope of Coinbase’s collateral lending and whether XRPL lending functions are introduced.

XLS-65/66 Most people don't realize how much of this is already real. Let's connect three things most people are tracking separately. Right now, today, you can borrow against your XRP without selling it. Coinbase added XRP as collateral for crypto-backed loans earlier this…