Ripple CTO Explains How Native Lending Protocol Will Expand XRPL Utility
Highlights
- Ripple announced that developers have proposed to add the Native Lending Protocol to the XRP Ledger.
- The protocol is expected to expand the DeFi capabilities of XRPL.
- Ripple CTO David Schwartz also weighed in on the development and expressed excitement.
Ripple, the blockchain payments firm, recently unveiled a groundbreaking proposal aimed at enhancing the utility of the XRP Ledger (XRPL). The Native Lending Protocol proposal has been spearheaded by developers Aanchal Malhotra and Vito Tumas. Moreover, it promises to revolutionize decentralized finance (DeFi) capabilities within the ecosystem.
Ripple Announces Native Lending Protocol Proposal For XRPL
The proposed protocol introduces a sophisticated framework for borrowing and lending digital assets directly on the XRPL. Furthermore, it will eliminate the need for intermediaries and fostering financial inclusion, transparency, and efficiency. Moreover, in a post on X Ripple CTO David Schwartz expressed his enthusiasm toward the proposal.
In addition, he highlighted the potential of the protocol to bring new utility to the XRPL. He wrote, “Very excited to see the XRP Ledger Native Lending Protocol proposal up for review and feedback – if passed, this could bring new utility to the XRPL. Together with the native DEX, this lending protocol forms a critical pillar in enabling more accessible, efficient, and transparent financial services.”
The Native Lending Protocol comprises three key specifications, emphasizing modularity, flexibility, and reusability:
- XLS-64d – Pseudo-Account: Enables associating a single pseudo-account with multiple ledger entries for tracking balances and issuing tokens.
- XLS-65d – Single Asset Tokenized Pool: Defines a new ledger entry for a single tokenized asset pool, enhancing asset management capabilities.
- XLS-66d – Native XRPL Lending Protocol: Utilizes the aforementioned specifications to manage Liquidity Provider assets, introduce off-chain underwriting, on-chain agreements, and streamline loan management processes.
Also Read: Pro-XRP Lawyer Spotlights New Ray Of Hope In Ripple Vs SEC Lawsuit
Features & Use Cases For Developers
Key features of the protocol include:
- Liquidity Providers depositing fungible tokens into Lending Pools to earn interest.
- Pool Delegates managing Lending Pools, attracting capital, and providing loans.
- Borrowers and Pool Delegates agreeing on loan terms off-chain, then recording them on-chain.
Moreover, Ripple explained that the protocol enables fixed-term loans with pre-set terms for interest-accruing loans. It bypasses the need for collateral through innovative risk management mechanisms.
Furthermore, the introduction of the Native Lending Protocol will not only enhance the XRPL’s DeFi capabilities but also unlocks a wide range of use cases for developers. Its modular design and extensibility facilitate the development and integration of lending decentralized applications (dApps), furthering the ecosystem’s growth and accessibility.
Also Read: XRP Ledger (XRPL) Welcomes Crucial NFT Amendment on Mainnet
- Analyst Eyes Solana ATH as 21Shares’ SOL-Focused Jupiter ETP Launches on Swiss Exchange
- Experts Predict Big ETH Rally on Bullish Options, Whales Signal Post-False Break
- US Shutdown: Bitcoin, Gold, and Silver Rally as Govt. Shutdown Odds Jump to 85% on Polymarket
- SEC Halts Trading In Solana Treasury Stock QMMM After Share Price Surges 959%- Market Manipulation?
- BREAKING: BlackRock Amends Bitcoin ETF (IBIT), Ethereum ETF (ETHA) Amid New Milestone
- Ethereum Price Forecast as Institutional and Whale Accumulation Fuel Reversal Setup
- Dogecoin Price Prediction – Chart Set-Up Highlights Perfect Buying Opportunity With Outflows Backing $0.45
- Bitcoin Price Set to Rebound Ahead of US Government Shutdown, NFP Data
- XRP Price Prediction: How XRP Could React After October 2025 SEC ETF Decisions
- Aster Price Prediction as US President Adds $110M Worth of Tokens to His Portfolio
- Pepe Coin Price Bounce Likely as Support Zone Aligns With Rising Social Activity
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
