XRP Ledger is approaching native lending: amendments XLS-65 and XLS-66 are under validator voting. They will add liquidity based on vaults and term loans directly into the network, without external smart contracts.
XLS-65 will introduce Single Asset Vaults, allowing the aggregation of a single asset and the receipt of shares. The vaults can utilize XRP, issued assets, and tokenized real-world assets. XLS-66 will leverage these vaults for term loans: creditworthiness checks and underwriting will remain off-chain, while loan creation, repayment, and defaults will occur on-chain. To activate the amendments, support from over 80% of validators is required within two weeks.
The system is built on term loans rather than automatic liquidation of collateral, as seen on many DeFi platforms. It can support business lending, working capital, and institutional products. The design of LendingProtocolV1_1 includes closed vaults with fixed subscription and repayment periods, cash accounting methods, and first-loss capital from brokers. XRPL Commons presented the proposals at a hackathon in New York, offering developers RWA vaults, permissioned pools, and secondary markets.
At the same time, other amendments are being advanced: PermissionDelegationV1_1 may activate on October 5 (limited powers without transferring control over the signature), and Batch V1.1 on September 29 (group transactions either succeed together or fail together).
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