Ripple Advances DeFi Ambitions with Single-Asset Vaults and Lending Protocols

Ripple continues to advance its vision for decentralized finance (DeFi) on the XRP Ledger, voting in favor of two key amendments that will enable single-asset vaults and lending protocols.

The Single Asset Vault (XLS-65) amendment, which has already garnered 40% consensus votes, creates a standardized on-ledger structure for pooling a single asset type such as XRP, RLUSD, or other tokens from multiple depositors. Depositors receive proportional shares, and the vault can provide liquidity into other protocols.

The Lending Protocol (XLS-66) amendment has more than 37% votes in favor, enabling fixed-term and uncollateralized loans funded from the vaults. Credit underwriting and compliance decisions remain off-chain with institutions, while the XRP Ledger manages loans, interest, repayments, defaults, and others.

Ripple's support for these amendments brings the firm closer to introducing institutional-grade lending and borrowing capabilities directly into the XRP Ledger, bolstering its position in the DeFi and tokenization space.