Ripple's XRP Ledger (XRPL) has moved one step closer to 'native lending,' which would build lending functionality directly into the ledger. According to overseas crypto media outlet CoinGape, the related amendments XLS-65 and XLS-66 are currently going through a validator vote. The two amendments would bring vault-based liquidity and fixed-maturity credit lending directly to the XRPL without relying on external smart contracts.

CoinGape reported that XRPL Commerce introduced the two proposals while announcing the lending and borrowing hackathon category being held in New York. Part of the plan includes supporting developers in creating credential-based lending, secondary markets, risk management tools, and user interfaces.

◆ XLS-65 Is a 'Single-Asset Vault'… XLS-66 Covers 'Fixed-Maturity Loans'

According to CoinGape, XLS-65 is an amendment introducing a single-asset vault feature. Users would pool a single asset in a vault and receive a share corresponding to their holdings. Depending on the final implementation, these vaults could include XRP, issued assets, and tokenized real-world assets (RWA).

CoinGape explained that XLS-66 uses these vaults to directly support fixed-maturity loans on the XRPL. Credit assessment and loan underwriting would take place off-chain, while loan creation, repayment, and default handling would occur on-chain.

However, according to CoinGape, the two proposals have not yet been activated on the mainnet, as XRPL amendments require sustained approval from validators. On the XRPL, amendments generally must receive over 80% support for two consecutive weeks before taking effect.

◆ A Design Different from DeFi… Centered on 'Fixed-Maturity Credit Loans'

CoinGape reported that this native lending system is designed around fixed-maturity credit loans, unlike the automated collateral liquidation model used by many decentralized finance (DeFi) platforms. This structure could be used on the XRPL for corporate lending, working capital, and credit products targeted at institutions.

CoinGape also reported that the new LendingProtocolV1_1 design includes closed-ended vaults with fixed subscription, investment, and repayment periods. It also uses cash-basis accounting, recognizing interest only when payments are actually received.

According to CoinGape, the system could also include first-loss capital provided by loan intermediaries to absorb part of the losses from defaults. However, the evaluation of borrowers and the assessment of loan risk are left to external underwriting and market participants.

CoinGape reported that XRPL Commerce presented examples of what developers could build, including vaults backed by real-world assets and permissioned lending pools. It also proposed a secondary market where principal and returns could be separated and traded before loan maturity.

◆ Account and Transaction Efficiency Amendments Also Progressing… Activation Dates Near

Alongside the lending-related amendments, other XRPL amendments aimed at improving account management and transaction processing efficiency are also in progress.

According to CoinGape, if sufficient validator support is maintained, PermissionDelegationV1_1 could be activated on October 5 (local time). This amendment would allow one account to grant limited permissions to another account without transferring full signing authority. CoinGape explained that this feature could enable companies to divide compliance, payments, and operational tasks across multiple accounts.

CoinGape also reported that Batch V1.1 is nearing possible activation, with a date set for September 29 (local time). This amendment allows multiple transactions to be grouped and processed together, or, if a problem occurs, for the entire group of transactions to fail together.

◆ XRP Price and the Outlook for Native Lending

At the time of reporting, the price of XRP was around $1.60. CoinGape reported that multiple amendments are going through the XRPL's decision-making process amid this price environment. However, the introduction of the native lending feature still depends on validator approval, and the activation dates for XLS-65 and XLS-66 have not yet been confirmed.

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