diff --git a/xds/src/main/java/io/grpc/xds/XdsChannelFactory.java b/xds/src/main/java/io/grpc/xds/XdsChannelFactory.java
index 8c001a174b2..cfd7664768d 100644
--- a/xds/src/main/java/io/grpc/xds/XdsChannelFactory.java
+++ b/xds/src/main/java/io/grpc/xds/XdsChannelFactory.java
@@ -52,17 +52,28 @@ XdsChannel createChannel(List<ServerInfo> servers) throws XdsInitializationExcep
       List<ChannelCreds> channelCredsList = serverInfo.getChannelCredentials();
       ManagedChannelBuilder<?> channelBuilder = null;
       // Use the first supported channel credentials configuration.
-      // Currently, only "google_default" is supported.
       for (ChannelCreds creds : channelCredsList) {
-        if (creds.getType().equals("google_default")) {
-          logger.log(XdsLogLevel.INFO, "Using channel credentials: google_default");
-          channelBuilder = GoogleDefaultChannelBuilder.forTarget(serverUri);
+        switch (creds.getType()) {
+          case "google_default":
+            logger.log(XdsLogLevel.INFO, "Using channel credentials: google_default");
+            channelBuilder = GoogleDefaultChannelBuilder.forTarget(serverUri);
+            break;
+          case "insecure":
+            logger.log(XdsLogLevel.INFO, "Using channel credentials: insecure");
+            channelBuilder = ManagedChannelBuilder.forTarget(serverUri).usePlaintext();
+            break;
+          case "tls":
+            logger.log(XdsLogLevel.INFO, "Using channel credentials: tls");
+            channelBuilder = ManagedChannelBuilder.forTarget(serverUri);
+            break;
+          default:
+        }
+        if (channelBuilder != null) {
           break;
         }
       }
       if (channelBuilder == null) {
-        logger.log(XdsLogLevel.INFO, "Using default channel credentials");
-        channelBuilder = ManagedChannelBuilder.forTarget(serverUri);
+        throw new XdsInitializationException("No server with supported channel creds found");
       }
 
       ManagedChannel channel = channelBuilder