XRP Ledger Validators Weigh Proposed Lending Infrastructure

Ripple's push to bring institutional credit to the XRP Ledger has reached a crucial governance stage, but it's still far from activating its proposed native lending infrastructure. Validators are currently considering the SingleAssetVault and LendingProtocol amendments, better known as XLS-65 and XLS-66 specifications.

The two proposals are designed to work together: XLS-65 introduces Single Asset Vaults, an on-ledger structure that can pool one asset from multiple depositors and issue tokenized shares representing ownership. These vaults can hold XRP, trust-line tokens or Multi-Purpose Tokens and can be configured as public or credential-restricted private vaults.

XLS-66 builds lending infrastructure on top of those vaults, allowing pooled funds to finance fixed-term, uncollateralized loans while recording loan agreements, payments and defaults directly on XRPL. Credit assessment and underwriting remain off-chain rather than being handled automatically by the ledger.