Ripple on June 29 unveiled the XRPL Lending Protocol, a native on-chain credit system for the XRP Ledger, with amendments now in validator voting after the release of XRPL v3.1.0, per CryptoTimes.
How XRPL lending works
The protocol has two amendment specifications. XLS-65 defines Single Asset Vaults, which pool individual digital assets and issue depositor shares. XLS-66 is the lending layer, which turns vault liquidity into fixed-term loans, calculates interest, enforces repayment schedules, and processes defaults on-chain.
Borrower evaluation, legal documentation, and compliance stay with financial institutions off-chain. “The blockchain handles the mechanics of a loan once it is agreed,” CoinDesk reported, “while the actual credit decision...stays with the lending institution off the blockchain.”
Validator vote is open
Both amendments require more than 80% continuous support from trusted validators for two consecutive weeks before activating under XRPL governance rules, per CryptoTimes. Ripple said it expects that threshold “in the coming weeks.”
Devnet is open for integration testing. No mainnet activation date has been set.
Why it matters
XRPL has operated primarily as a payments and settlement ledger. The Lending Protocol is its first native credit and collateralization mechanism, built into the base protocol rather than added as a separate application. That gives institutions a standard on-chain surface for originating and managing loans against pooled assets.
“Moving an asset onchain is only half the job, and without a credit layer, tokenized markets cannot function like real capital markets,” Ripple said in the announcement, per CryptoTimes.