XRP Ledger Targets Native DeFi Lending with XLS-66 Proposal

The XRP Ledger is making strides to become a major player in decentralized finance (DeFi) by introducing native lending and borrowing capabilities through the XLS-66 proposal.

The amendment, currently at an 80% validator hurdle, aims to bring straightforward on-chain uncollateralized fixed-term loans utilizing pooled funds with pre-set terms for interest-accruing loans.

According to XRPL researcher Vet, lenders will not issue funds blindly, relying heavily on off-chain underwriting and risk management. The system prioritizes flexibility, reusability, and regulatory compliance.

The proposal is co-authored by Ripple developers Vytautas Vito Tumas and Aanchal Malhotra, who introduced the protocol in XRPL version 3.1.0.