The XRP Ledger is moving closer to native lending as developers propose new tools for pooled credit. The initiative could expand the network beyond payments and asset transfers. However, validators must approve the proposed amendments before lending can launch on mainnet.
New lending infrastructure takes shape
XLS-65 would introduce Single Asset Vaults for XRP, RLUSD, and other supported tokens. Depositors would receive shares based on their contributions to each vault. Meanwhile, loan brokers could use those pooled assets to arrange fixed-term loans under XLS-66.
Additionally, LendingProtocolV1_1 would introduce vaults with defined deposit, lending, and withdrawal periods. The amendment would also recognize interest income when borrowers actually make payments.
The system would leave borrower screening and lending decisions with participating firms. Brokers could also contribute first-loss capital to absorb part of potential defaults. Consequently, depositors would still face credit and liquidity risks.
XRP impact depends on adoption
The XRP Ledger 3.4.0 release includes the necessary software rules, but activation requires validator approval. More than 80% of trusted validators must support an amendment for two consecutive weeks.
XRP currently trades near $1.49 after falling 5.07% over 24 hours. The token remains up 18.36% over seven days.
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