XRP Ledger Prepares to Implement Native Lending Amidst DeFi Growth

The XRP Ledger is preparing to implement native lending, which embeds loan rules directly into the ledger's base code. This update is awaiting approval from XRP Ledger validators, who require at least 80% support for two weeks to activate. If approved, XRP Ledger will allow all wallets and applications to use the same built-in lending feature without developing and auditing individual lending contracts.

Doppler Finance, the leading DeFi application on the XRP Ledger, has surpassed $130 million in deposits, with the majority being held on the XRP Ledger. This is three times greater than the combined total of other XRPL DeFi applications. The gap between XRPL DeFi and Solana's DeFi applications is significant, with Solana holding around $6.7 billion in deposits, while XRPL's total is $181 million.

The XRP Ledger's native lending update could potentially reduce the amount of XRP available in the market for the duration of each loan, as new vaults may accept XRP as collateral. However, if the new vaults primarily lend Ripple's RLUSD stablecoin, the lending capacity on the ledger could increase significantly without generating much new demand for XRP.