XRPL Eyes New Lending Standard with Pooled Assets

The XRP Ledger is considering a new lending standard that would allow for fixed-term loans using pooled assets. The proposal, called XLS-66, relies on the existing XLS-65 Single Asset Vaults system.

Under this system, depositors would pool their assets together and receive shares representing their stake in the pool. A loan broker would manage the pool, set fees, approve loans, and determine first-loss capital requirements.

The proposal focuses on uncollateralized lending and does not include automatic collateral sales or forced liquidations. Instead, brokers would assess borrowers outside of the XRP Ledger using financial records, legal agreements, guarantees, trading history, or other credit checks.