XRP Lenders Face Lockup Periods of Minutes to Decades
The XRP Ledger's latest server release has introduced a new lending tool that allows depositors to commit assets to a vault for a fixed term, locking up their XRP from minutes to decades.
This development defines a future lending market where depositors can wait until a set redemption date to withdraw their assets. The mechanism is a voluntary term commitment tied to a specific pool.
The closed-ended vaults separate subscription, investment, and redemption periods, pausing deposits and withdrawals during the investment phase while counting interest only when paid.
Cash-basis accounting has also been implemented, which recognizes interest as borrowers pay it, rather than at origination. This change makes the reported asset value less dependent on money that has not yet arrived.