XRPL 3.4.0 Drops, Lenders Get Vaults, Validators Get Homework 📚

The XRP Ledger Foundation has rolled out version 3.4.0 of the XRP Ledger, introducing a revised lending framework alongside new amendments, stronger peer protections and performance updates for network nodes. The release includes Lending Protocol v1.1, which brings closed-ended vaults and cash-basis accounting to the protocol's lending functions. XRPL lending loans follow the XLS-66 specification, offering fixed-term loans backed by Single Asset Vaults. The model relies on off-chain underwriting and risk assessment rather than requiring each loan to carry on-chain collateral. Installing XRPL 3.4.0 does not activate the new lending rules on its own; validators must first approve the amendment before it takes effect across the network. Developers are also using formal verification, a method that applies mathematical proofs to confirm the protocol's behavior under specific inputs, alongside traditional software testing. Another amendment bundled in the release is fixCleanup, which groups multiple fixes into a single proposal and follows earlier cleanup work covering Single Asset Vaults, lending, automated market makers and other XRPL functions. Version 3.4.0 also adjusts how nodes handle ledger history, improves peer-to-peer protections and speeds up Multi-Purpose Token freeze checks. The full update is available for validator review ahead of any potential activation vote.