Breaking: Ripple Advances Lending Protocol and Single Asset Vault on XRP Ledger

Ripple voted in favor of Single Asset Vault (XLS-65) and Lending Protocol (XLS-66) amendments, moving them closer to enabling on the XRP Ledger. The proposals bring XRP, RLUSD or other crypto assets vaults and fixed-term credit and institutional lending on the blockchain, boosting DeFi and tokenization.

Ripple Votes ‘Yes’ on Single Asset Vault and Lending Protocol Amendments

Ripple voted in favor to enable two key amendments on the XRP Ledger (XRPL) that would introduce on-chain credit and lending infrastructure. Currently, both Single Asset Vault (XLS-65) and Lending Protocol (XLS-66) amendments remain open for validator voting.

After the latest vote, the Single Asset Vault (XLS-65) now has 40% consensus votes. Meanwhile, the Lending Protocol (XLS-66) amendment has more than 37% votes in favor.

It will require more than 80% votes or 28 of 35 dUNL support for two weeks to activate on XRPL mainnet. Ripple UNL validator voting to support the amendments marks progress toward introducing lending protocol directly into the XRP Ledger.

Ripple said the amendments make the blockchain capable of supporting institutional-grade lending and borrowing, boosting the firm’s position in the DeFi and tokenization space.

Meanwhile, Ripple announced XRP Ledger upgrade 3.3.0 and urged validators to update with the latest release. The network state shows 39% of validators have already updated to the v3.3.0 release.

XLS-65 and XLS-66 Key amid DeFi and Tokenization Push

The Single Asset Vault creates a standardized on-ledger structure for pooling a single asset type such as XRP, RLUSD, or other tokens from multiple depositors. Depositors receive proportional shares, and the vault can provide liquidity into other protocols.

Moreover, the Lending Protocol will enable fixed-term and uncollateralized loans funded from the vaults. Credit underwriting and compliance decisions remain off-chain with institutions, while the XRP Ledger manages loans, interest, repayments, defaults, and others. The first-loss capital protection scheme absorbs some of the losses in case of a loan default.

As CoinGape reported earlier, XRPL Lending Protocol cleared a re-audit by blockchain security firm Halborn. The audit found no critical issues, with all reported findings fully addressed by the XLS-66 developers.

Recently, yield protocol SOIL announced plans to build on the XRPL Lending Protocol and Single Asset Vault once activated. They cited use cases such as lending, yield generation, and tokenized fixed-income products.

Moreover, Ripple-backed Evernorth is actively preparing to utilize the Lending Protocol (XLS-66) to generate institutional-grade yield on its extensive XRP holdings.

As financial institutions prepare to leverage these vaults, choosing the best institutional custody solutions for tokenized assets will be critical to meeting regulatory compliance and securing on-chain capital.