$XRP Lending Proposal Gets Ripple Support, But Validators Remain Skeptical

Ripple has supported two amendments to the XRP Ledger that would introduce native lending and vaults, although both proposals still require approval from validators.

The proposed changes, XLS-65 and XLS-66, aim to add Single Asset Vaults and a lending framework to XRPL. Currently, XLS-65 has around 40% validator support, while XLS-66 has more than 37%, but both are below the required 80% threshold.

XLS-65 would enable users to pool a single asset type within a standardized XRPL structure, allowing depositors to receive proportional claims on the assets held by the vault. XLS-66 takes this a step further by establishing the proposed XRPL Lending Protocol, which would allow vault liquidity to fund fixed-term loans while recording loan terms, interest, repayments, and defaults on the ledger.

The proposed system would separate credit decisions from blockchain settlement, with loan brokers connecting borrowers with available vault liquidity. A first-loss mechanism could absorb an initial portion of losses following a default.