XRP Ledger Advances Native Lending Capabilities with Proposed Amendments
The XRP Ledger is moving closer to native lending capabilities as two related amendments progress through validator voting. The proposed features, known as XLS-65 and XLS-66, would enable vault-based liquidity and fixed-term credit directly on the network without relying on external smart contracts.
XLS-65 would introduce Single Asset Vaults, which would allow users to combine their assets and receive shares corresponding to their positions. These vaults could include XRP, issued assets, or tokenized real-world assets. Meanwhile, XLS-66 would use these vaults to support fixed-term loans directly on the XRP Ledger.
The proposed lending system is built on fixed-term credit, which differs from automated collateral liquidation found on many DeFi platforms. This structure could support business lending, working capital, and institution-focused credit products on XRPL.
XRPL Commons has suggested several applications for developers, including RWA-backed vaults and permissioned lending pools. The new LendingProtocolV1_1 design incorporates closed-ended vaults with fixed subscription, investment, and redemption periods, as well as cash-basis accounting to recognize interest when payments are received.