XRP Ledger Votes on Institutional Credit as Lending Infrastructure Takes Shape
The XRP Ledger is finally voting on institutional credit, marking a crucial step in launching native lending infrastructure for large businesses. Independent validators have started voting on the XLS-65 and XLS-66 amendments, which will allow institutions to borrow directly at the blockchain's core, eliminating vulnerable third-party smart contracts.
The level of support currently stands at 34-37% of the required 80%. Voting began after the code passed a rigorous security audit by Sherlock and Clearpool started the final testing of its technical demo on DevNet.
Ripple has formed an alliance with market leaders to attract institutional capital, including Clearpool, Cicada Partners, and Ripple itself. The partnership will allow institutions to borrow XRP in Single Asset Vaults, generating real yield on equal terms with funds. Every lending transaction will burn network fees in XRP.
The main settlement currency will be the regulated stablecoin RLUSD, or Ripple USD, which includes a Clawback function for forcibly returning funds when violations are detected. Ripple is also accelerating fiat settlements to support the lending pools and awaiting a master account with the U.S. Federal Reserve through its subsidiary Standard Custody.