XRPL Eyes Lending Standard for Fixed-Term Loans with Pooled Assets

The XRP Ledger is exploring a new lending standard that would allow pooled assets to fund fixed-term loans. The proposal, XLS-66, relies on XLS-65 Single Asset Vaults, where depositors receive shares representing their pool ownership.

Loan brokers would manage lending pools, set fees, approve loans, and determine first-loss capital requirements. Credit checks and borrower assessment would remain off-chain rather than using automatic collateral liquidations.

The system would support late-interest rules, origination fees, and early repayment charges. If a borrower misses payments beyond the grace period, the broker could mark the loan as impaired or defaulted.