- The SAV works in concert with the XRPL Lending Protocol to record and enforce fundamental loan lifecycle events on the ledger.
- In order to ensure compliance, the implementation of Soil follows a hybrid paradigm that is geared for regulated participation.
The ORQO Group, which is an institutional asset manager and technology platform that operates at the convergence of conventional finance and blockchain, has made an announcement that its fintech platform, Soil, has introduced a Single Asset Vault (SAV) on the XRP Ledger (XRPL). Soil is positioned to be an early institutional user of the upcoming XLS-66 amendment as a result of this, which simplifies the process by which financial institutions aggregate capital and manage on-chain lending activities.
Banks, custodians, and internal systems are often involved in the fragmentation of institutional fundraising and loan administration, which leads to manual reconciliation, delayed risk assessment, and operational bottlenecks. SAV is intended to overcome these challenges by consolidating capital into a uniform on-chain structure. This will result in the creation of a single source of truth for deployed assets and loan performance.
Through the use of SAV, institutional lenders are able to pool capital that is denominated in RLUSD directly on the XRPL. This allows for settlements to be completed very instantly and allows for transaction costs to be predicted. Once the process of capital deployment has begun, the vault structure decreases the amount of operational friction that occurs thanks to the consolidation of fundraising into a single asset on a single ledger.
“We are on the verge of Web3 supporting real, high volume institutional workflows, not just technical primitives,” said Nick Motz, CEO of ORQO Group and CIO of Soil. “By recording loan activity directly on-ledger while maintaining off-chain underwriting and risk controls, we are significantly reducing operational overhead and safeguarding institutional standards.”
The SAV works in concert with the XRPL Lending Protocol to record and enforce fundamental loan lifecycle events on the ledger. These events include the establishment of loans, the accumulation of interest, and the monitoring of repayments. Off-chain operations continue to be used for credit underwriting, borrower evaluation, and risk management, as is customary in the lending procedures of institutions. It is not necessary to rely on manual spreadsheets since accounting and reporting are generated straight from the ledger. This allows for constant insight into loan balances, due dates, and exposure.
In order to ensure compliance, the implementation of Soil follows a hybrid paradigm that is geared for regulated participation. While the settlement and accounting operations are taking place on-chain, Single Asset Vaults may be permissioned utilizing domain-level restrictions. This allows identity verification, Know Your Customer and Know Your Business procedures, and wallet screening to continue in their current state. Because of this framework, institutions are able to reap the benefits of blockchain efficiency without having to embrace anonymous or automated lending models for decentralized finance.
Soil is able to aggregate RLUSD from institutional lenders such as family offices and fund managers by using permissioned SAVs and fixed-term lending criteria. The pooled capital is invested in institutional techniques such as money market funds and private credit, with the goal of achieving a return range of roughly 8% annual percentage rate (APR).
Despite the fact that the mainnet activation of the XLS-66 amendment is still pending, Soil has already started growing on XRPL, and a demonstration of fund flows is scheduled to take place.
Single Asset Vault, which is offered by Soil, is a basic offering that brings on-chain asset management that is both automated and scalable. This gives a specific use case for the XRPL ecosystem, demonstrating how native lending primitives can enable credit markets that are compliant and of an institutional quality.
Soil is a lending protocol that is built on blockchain technology. It bridges the gap between conventional finance and the world of cryptocurrencies, therefore changing corporate debt and fixed-income investments. Established businesses are able to acquire funding via this debt marketplace, and cryptocurrency investors are able to lend their stablecoins in order to earn yields that are generated from Real World Assets that cannot be found on the blockchain. Soil generates revenue by collecting a portion of the interest that borrowers pay to lenders, in addition to the fees that are generated by facilitating the connection between the two parties.
In the realm of conventional finance and blockchain innovation, ORQO Group is a worldwide institutional asset management and technology platform that operates at the confluence of these two fields. Within the context of a single on-chain investing ecosystem, the Group brings together regulated private credit, public stocks, digital hedge fund strategies, DeFi-native yield solutions, and tokenized real estate. With over $300 million in assets under management and licenses already in place in Poland (KNF) and Malta (MFSA), as well as the establishment of its global headquarters in Abu Dhabi, ORQO is in the process of developing a model for the future of capital markets that is open, compliant, and scalable. ORQO is in the process of developing a new model that is intended for institutional investors, such as family offices and protocol treasuries. This will be accomplished with the assistance of a team that have extensive knowledge in both institutional finance and digital assets.
