Ripple Backs New Lending Infrastructure for XRP Ledger

The proposed amendments introduce a dual-layer system for decentralized finance. XLS-65 creates a framework for single-asset vaults, allowing users to pool assets like XRP and RLUSD, while XLS-66 establishes a protocol for fixed-term institutional lending. Unlike traditional decentralized markets that rely on over-collateralization, this model offloads credit checks and underwriting to off-chain institutions, using the ledger primarily for settlement and record-keeping.

To move from development to the mainnet, the amendments require sustained support from over 80% of trusted validators for two consecutive weeks. Current data shows XLS-65 and XLS-66 holding roughly 40% and 37% support respectively. While Ripple’s endorsement carries significant weight, the company cannot unilaterally activate the changes. The protocol has already cleared a security re-audit by Halborn, which identified no high-risk vulnerabilities, clearing a key technical hurdle for node operators as they evaluate the code.