XRPL Says 'Lend Me Your Tokens': Native Lending Amendments Hit the Voting Booth 🏛️

The XRP Ledger moved closer to native lending on Tuesday as two related amendments, XLS-65 and XLS-66, remain in validator voting, according to XRPL Commons. The proposals would introduce vault-based liquidity and fixed-term credit directly on the network without external smart contracts.

XLS-65 would enable Single Asset Vaults, allowing users to deposit single assets and receive shares representing their positions. Eligible assets would include XRP, issued assets, and tokenized real-world assets, depending on the final implementation. XLS-66 would use those vaults to support fixed-term loans directly on the XRP Ledger, with credit checks and underwriting handled off-chain while loan creation, repayments, and defaults are recorded on-chain.

The features were highlighted by XRPL Commons during the promotion of its Lending and Borrowing hackathon track in New York, with planned incentives for developers building credential-based lending applications, secondary markets, risk tools, and interfaces. Both proposals have not yet been activated on mainnet, as XRPL amendments require continued validator approval. The network generally requires more than 80% support for two continuous weeks before an amendment takes effect.

Additional amendments are also advancing through the voting process. PermissionDelegationV1_1 and Batch V1.1 are moving forward as the XRP Ledger expands institutional finance capabilities, according to XRPL Commons. The proposed lending system is built on fixed-term credit, distinguishing it from automated market maker-based lending models used elsewhere in decentralized finance.