XRP News: XRP Ledger Moves Closer to Native Lending as New Proposals Enter Voting

In major XRP news today, the XRP Ledger is moving closer to native lending as two related amendments remain in validator voting. XLS-65 and XLS-66 would add vault-based liquidity and fixed-term credit directly to the network, without external smart contracts.

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XLS-65 and XLS-66 Move Through Validator Voting

XRPL Commons highlighted the proposals during the promotion of its Lending and Borrowing hackathon track in New York. The planned features are being incentivized for developers to create applications for credential-based lending, secondary markets, risk tools, and interfaces.

XLS-65 would enable Single Asset Vaults, which would allow users to combine their single asset and then get shares corresponding to their positions. These vaults could include XRP, issued assets, and tokenized real-world assets, depending on the final implementation.

In the meantime, XLS-66 would use those vaults to support fixed-term loans directly on the XRP Ledger. Credit checks and underwriting would be off-chain, and loan creation, repayments, and defaults would be on-chain.

Both proposals have not yet been activated on mainnet yet because XRPL amendments will need continued validator approval for activation. The network generally needs more than 80% support for two continuous weeks before an amendment can take effect.

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Native Lending Expands XRPL’s Institutional Finance Tools

The proposed lending system is built on fixed-term credit, as opposed to automated collateral liquidation found on many DeFi platforms. That structure could support business lending, working capital, and institution-focused credit products on XRPL.

Additionally, the new LendingProtocolV1_1 design incorporates closed-ended vaults that have fixed subscription, investment, and redemption periods. It also uses cash-basis accounting, so interest is recognized when payments are actually received.

The protocol can also include first-loss capital from loan brokers to absorb part of a default. However, the assessment of the borrower and their risk for lending would still be subject to external underwriting and market participants.

XRPL Commons has suggested several applications for developers, including RWA-backed vaults and permissioned lending pools. It also suggested secondary markets that could be used to separate the principal of the loan from yield before maturity.

Other XRPL Amendments Advance Alongside Lending Plans

The lending offers are being progressed in tandem with other enhancements to XRPL for better account control and transaction efficiency. If sufficient validator support is maintained, PermissionDelegationV1_1 may be activated on October 5th.

That amendment would let one account grant another account limited authority without sharing full signing control. The functionality might allow companies to split compliance, payment, and operational tasks among multiple accounts.

In addition, in other recent XRP news, Batch V1.1 is also closing in on possible activation, which is scheduled for September 29. The change would permit “grouped” transactions to settle together or fail together.

At press time, XRP was trading near $1.60 as these amendments moved through the network’s governance process. However, the native lending remains conditional on validator approval, so XLS-65 and XLS-66 still lack confirmed activation dates.