XRP Ledger lending amendments gain Ripple’s backing

Ripple has voted to support two $XRP Ledger amendments designed to introduce single-asset vaults and fixed-term institutional lending directly at the network’s protocol level.

Ripple backs $XRP Ledger lending amendments

Ripple’s validator has backed the Single Asset Vault and Lending Protocol amendments as voting continues among trusted $XRP Ledger validators.

XLS-65, which would introduce Single Asset Vaults, has reached approximately 40% support. XLS-66, covering the proposed Lending Protocol, has received more than 37% support, according to the latest voting data.

The current totals remain well below the activation threshold. An amendment must maintain support from more than 80% of trusted validators for two continuous weeks before it can become active on the $XRP Ledger mainnet.

Based on the current default Unique Node List configuration, the proposals would need support from at least 28 of 35 validators. Ripple’s vote therefore moves the amendments forward but does not establish an activation date.

The vote follows the amendments’ entry into the formal validator process earlier this year. As crypto.news previously reported, XLS-65 and XLS-66 are intended to provide lending infrastructure at the ledger level rather than through external smart contracts.

Validators can independently decide whether to support an amendment. Ripple’s vote carries attention because the company remains a major contributor to XRPL development, but it cannot activate the proposals by itself.

How XLS-65 and XLS-66 would work

XLS-65 would establish a standard structure for pooling one type of asset from multiple depositors. A vault could hold $XRP, Ripple USD (RLUSD), or another token issued on XRPL while giving depositors proportional shares representing their claims on the pooled assets.

The vault could then supply liquidity to other services, including the proposed Lending Protocol.

XLS-66 would use liquidity held in those vaults to fund fixed-term loans. Unlike many decentralized lending markets, the proposed system would not require every borrower to provide more collateral than the value of the loan.

Institutions would instead conduct credit checks, compliance reviews, legal assessments, and underwriting off-chain. The $XRP Ledger would manage the agreed loan terms, including interest, repayment schedules, servicing, and default records.

Loan brokers would connect borrowers with vault liquidity and manage the credit relationship. A first-loss capital mechanism could absorb an initial share of losses if a borrower defaults, offering some protection to vault depositors.

The separation between off-chain underwriting and on-chain execution is meant to accommodate regulated lenders that cannot rely entirely on anonymous borrowers and automated liquidations. For U.S. institutions, using the protocol would not remove obligations arising from lending, securities, consumer protection, sanctions, or anti-money laundering rules.

Instead, the ledger would serve as settlement and record-keeping infrastructure after participating institutions complete the required checks.

Security review clears major lending flaws

The lending code has undergone several security reviews ahead of the validator decision.

Blockchain security firm Halborn completed a re-audit covering transaction checks, accounting rules, access controls, parameter limits, and consistency between protocol states. The review found no critical or high-risk vulnerabilities.

Halborn identified five issues: one medium-risk finding, two low-risk findings, and two informational findings. Ripple addressed, accepted, or acknowledged all five, according to the audit report.

“We are proud to share that we have completed our $XRP Ledger Lending Protocol Re-Audit for Ripple,” Halborn said when announcing the review.

The medium-risk issue involved a way loan interest could cause a vault to exceed its maximum asset limit. Ripple resolved that finding, along with a low-risk issue involving a missing freeze check.

The audit does not eliminate default, underwriting, liquidity, or implementation risks. However, it cleared another technical requirement as validators assess whether the amendments are ready for mainnet use. crypto.news covered the re-audit in June.

$XRP Ledger applications prepare for activation

Developers are already testing possible applications on XRPL’s Lending DevNet while the amendments await approval.

Yield protocol SOIL has said it plans to become one of the first applications built on the Single Asset Vault and Lending Protocol framework. Its proposed products include lending markets, yield strategies, and tokenized fixed-income instruments.

A demonstration showed users depositing assets into separate vaults and receiving tokens representing their proportional ownership. However, the system remains in a development environment and cannot launch on the mainnet unless validators approve both amendments. crypto.news previously reported on SOIL’s preparations.

Ripple-backed $XRP treasury company Evernorth has also identified the lending framework as a possible way to earn institutional-grade returns on its holdings. Actual yields would depend on borrower demand, credit quality, vault terms, and protocol adoption after launch.

The vote comes alongside the release of $XRP Ledger version 3.3.0, which includes work on lending, confidential transfers, transaction batches, sponsored fees, and configurable token features. Those changes also require validator approval and should not be treated as active mainnet functions solely because their code has been released.

As crypto.news reported, node operators must upgrade their software and consider each amendment separately.

$XRP traded near $1.02 at the time of writing, down about 2.2% over 24 hours and 5.7% during the past week. The validator vote did not produce an immediate positive price reaction, suggesting traders remain focused on whether the amendments can reach the required threshold and generate real lending demand after activation.