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Ripple has deployed more than $550 million into XRP Ledger (XRPL) ecosystem initiatives since 2017 and announced a shift toward a more distributed funding structure beginning in 2026, while decentralized lending protocols continue to expand, with total value locked (TVL) across the sector currently exceeding $53 billion.
Ripple Expands XRPL Funding Channels in 2026
Ripple stated on Feb. 26 that it will transition to a broader funding model for XRPL builders in 2026. Since 2017, the company has allocated over $550 million through grants, incentives, strategic partnerships, and ecosystem programs.
The new structure introduces multiple funding pathways. XAO DAO, a hybrid decentralized autonomous organization, will enable community-driven grant allocation. XRPL Commons will continue building programs, including GLOW and The Aquarium incubator in Paris. The University Digital Asset Xcelerator (UDAX) is expanding to include institutions such as Fundação Getulio Vargas, the University of Oxford, and UC Berkeley.
Ripple also plans to launch a FinTech Builder Program targeting institutional-grade applications on XRPL. Venture firms, including Dragonfly, Pantera, Franklin Templeton, and others, are participating in mentorship and capital access initiatives. A new XRPL funding hub will serve as a single access point for grants and accelerator programs.
 
XRP declined approximately 2% over the past 24 hours and continues to trade near $1.40. Short-term price action remains aligned with broader market conditions.
Lending Sector TVL Surpasses $53B
The decentralized lending sector holds approximately $53.02 billion in total value locked (TVL), based on aggregated on-chain data. Over the past seven days, protocols generated about $20.54 million in fees and $2.45 million in revenue, indicating ongoing on-chain activity.
Aave remains the largest protocol, with roughly $43.1 billion in TVL, representing about 55–56% of total sector liquidity, according to TokenTerminal. Over the past year, Aave’s TVL has increased by more than 40%. The second-largest protocol holds under $9 billion in TVL, reflecting liquidity concentration among leading platforms.
TVL and borrowing volumes have moved in line with broader market conditions. Despite volatility, lending protocols continue to generate recurring fees, maintaining their role within DeFi infrastructure.
Emerging Protocol Expand on Testnet
Mutuum Finance (MUTM), an Ethereum-based lending protocol, is currently operating its V1 framework on the Sepolia testnet. According to project disclosures, testnet liquidity has surpassed $150 million in simulated total value locked (TVL).
The current protocol version allows users to test its core components:
- Liquidity Pools: Users supply assets into shared pools that provide liquidity for borrowers and generate yield based on utilization.
- mtTokens: Minted on a 1:1 basis when assets are deposited, mtTokens represent proof of deposit and accrue interest over time.
- Stability Factor: A risk metric that measures the health of a borrowing position relative to required collateral thresholds.
- Safe-Mode Borrow Presets: A preset system that enables users to select predefined risk levels when opening borrowing positions.
- Debt Tokens: Issued when users borrow, tracking principal and accumulated interest.
- Automated Liquidator Bot: A monitoring mechanism that triggers liquidation if collateral falls below protocol requirements.
To lend on the Mutuum Finance testnet, users connect a compatible wallet to the Sepolia network and mint supported testnet assets such as ETH, USDT, WBTC, or LINK. Once minted, these assets can be supplied into the protocol’s liquidity pools. In return, users receive mtTokens and accruing yield based on pool utilization.
To borrow, users first deposit a supported asset as collateral. Based on the collateral value and applicable loan-to-value parameters, they can borrow another asset from the available liquidity.
Prior to its testnet launch, the lending and borrowing smart contracts were audited by Halborn, a blockchain security firm that has also conducted audits for projects including Ripple and Solana.
On the token side, the native MUTM token is priced at $0.04, with more than 19,000 holders reported and fundraising nearing $21 million. From a capped total supply of 4 billion tokens, over 850 million have been sold. The MUTM token smart contract was previously reviewed by CertiK, receiving a Token Scan score of 90 out of 100.
From the capped total supply of 4 billion MUTM tokens, 5% represents 200 million tokens allocated for giveaway incentives and leaderboard-based rewards. An additional 5%, equal to 200 million tokens, is designated for partnerships to support strategic collaborations, technological integrations, ecosystem expansion, and joint development initiatives
Ripple’s revised funding structure underscores ongoing capital allocation within the XRPL ecosystem, while decentralized lending protocols continue to report strong TVL levels and recurring fee generation. In parallel, newer platforms such as Mutuum Finance are progressing with testnet activity, feature implementation, security audits, and token distribution as development continues.
Disclaimer: This is a sponsored article, and views in it do not represent those of, nor should they be attributed to, ZyCrypto. Readers should conduct independent research before taking any actions related to the company, product, or project mentioned in this piece; nor can this article be regarded as investment advice. Please be aware that trading cryptocurrencies involves substantial risk as the volatility of the crypto market can lead to significant losses.
Source: https://zycrypto.com/550m-committed-to-xrpl-development-as-crypto-lending-protocols-grow/