XRP Ledger Upgrade Brings On-Chain Credit Capabilities
The XRP Ledger has released an upgrade that expands its lending infrastructure for on-chain credit. This development is significant as it brings more financial activity to the blockchain.
XRP's price has returned above $1.40, and Clarissa Yorke, Partner/KOL Manager at AgencyLaser, believes this is part of a larger trend. 'XRP is getting interesting again,' she said. According to Yorke, XRP's story is expanding beyond its historical focus on payments.
The update includes the LendingProtocolV1_1 amendment, which extends XRPL's Lending Protocol and Single Asset Vault framework with closed-ended vaults and cash-basis accounting. The protocol divides participants into three main groups: loan brokers, depositors, and borrowers.
Closed-Ended Vaults operate through three predefined stages: subscription, investment, and redemption. During the subscription phase, assets can be deposited into the vault. During the investment phase, deposits and withdrawals are restricted while capital can be deployed into loans. During the redemption phase, new loans can no longer be created, and depositors can withdraw their share of the proceeds as the structure winds down.