Ripple's Schwartz Underestimates XRP Lending Potential, Flare CEO Claims

Overview## Ripple CTO David Schwartz is underestimating the true potential of lending on the XRP Ledger, according to Flare Networks CEO Hugo Philion. Philion claims that Flare's workaround will give the XRPL full smart contract capabilities, allowing asset holders to lend coins directly from their native wallets. ## Market Demand## Flare has already deployed a lending market on external platforms using FXRP, with $7.2 million in debt borrowed through its RLUSD stablecoin. This demonstrates the potential demand for lending on the XRPL. ## Ripple's Response## Ripple's native XLS-66 model, designed for off-chain underwriting, is still awaiting approval. Meanwhile, Flare's infrastructure has already provided liquidity to the market, with three addresses holding 93% of the debt in Morpho pools and Sentora. ## Flare's Strategy## Flare is betting that its Protocol Managed Wallets and Flare Confidential Compute stack will give it the edge it needs to deploy programmable logic on its own side, channeling new financial flows into its ecosystem. This strategy is seen as a way for Flare to compete with Ripple's native XLS-66 model, which is still waiting for approval. ## Conclusion## Flare's CEO claims that his company has plans for lending on the XRPL, and it is working on a workaround to give the XRPL full smart contract capabilities. This move is seen as a challenge to Ripple's dominance in the lending space, and it will be interesting to see how the market responds to this development.