$XRP Ledger Lending Vote Inches Forward Amid Regulatory Scrutiny

XRP Ledger validators are considering two amendments that would add single-asset vaults and fixed-term lending directly to the network's core protocol. The amendments, XLS-65 and XLS-66, have not yet reached the support required for activation.

The proposed $XRP Ledger lending system relies on off-chain underwriting rather than automatic overcollateralization and liquidation. Institutions would conduct identity checks, assess borrowers, negotiate loan terms and complete legal reviews outside the blockchain.

Ripple's validator voted in favor of both amendments in August. However, Ripple cannot approve the changes independently because validators decide whether to support each amendment.