XRPL Explores Fixed-Term Lending Through Pooled Assets

XRPL is exploring a new lending standard that would allow for fixed-term loans funded through pooled assets. The proposal, XLS-66, relies on XLS-65 Single Asset Vaults to collect assets from depositors and issue shares representing their stake in each pool.

A loan broker would create and manage the pool, approve loans, set fees, and determine first-loss capital requirements. This approach gives brokers a central role in risk control and allows them to assess borrowers outside of XRPL using financial records, legal agreements, guarantees, trading history, or other credit checks.

The proposal does not add automatic collateral sales or forced liquidations, focusing instead on uncollateralized lending. Brokers could post first-loss capital to reduce depositor losses if borrowers default.