Evernorth, a treasury firm associated with XRP, has signaled a major utility expansion for the XRP Ledger (XRPL) with a native lending protocol nearing implementation. The firm highlighted updates in rippled version 3.1.0 and outlined the feature's potential to unlock over $100 billion in dormant XRP liquidity, fundamentally reshaping the network's financial use cases.
The proposed lending system, identified as amendment XLS-66, is currently under active voting by XRPL network validators. This governance process will determine if the feature becomes part of the live network, with the deployment timeline dependent on achieving consensus among ecosystem participants.
The protocol is designed to embed lending functionality directly into the blockchain, eliminating reliance on external platforms. Key features include single-asset vaults, term lending with automated repayment systems, and confidential transfers supported by zero-knowledge proofs (ZKPs) to hide sensitive transaction details. Evernorth's Chief Business Officer, Sagar, explained that the system turns the blockchain ledger itself into a loan agreement, with programmatic interest and collateral rules, removing the need for separate record-keeping and reconciliation.
Ecosystem participants like Bank XRP view the upgrade as a critical addition to the XRPL stack, expanding the network's role beyond traditional payments into decentralized finance (DeFi). The protocol aims to allow XRP holders to generate fixed yields by lending their assets to institutional borrowers and collateral managers, transforming idle capital into productive capital.
Concurrently, development efforts are emphasizing enhanced security. Ripple is applying AI-driven testing throughout the development cycle and employing a dedicated red team to simulate attack scenarios, ensuring upgrades meet stricter reliability standards before deployment.
In related XRP ecosystem news, community member LJ observed testing of Ripple Payments Direct (RPD) executed natively on the XRPL using a stablecoin, potentially RLUSD. This marks a shift, as institutions often prefer stablecoins to avoid the volatility associated with using XRP as a bridge asset, indicating progress in Ripple's enterprise payment product integration with the public ledger.
Despite these positive developments, spot XRP Exchange-Traded Funds (ETFs) are experiencing a slowdown in momentum. Data from SoSoValue revealed zero net inflows into XRP ETFs on March 26, 2026, following a modest $1.26 million inflow the previous day. Major issuers like Canary, Franklin Templeton, 21Shares, Bitwise, and Grayscale all showed zero net flows, signaling weaker demand after a strong post-launch accumulation phase. Meanwhile, XRP's price declined about 2.6% to trade near $1.33 amid broader market pressure, while trading volume surged over 42.94%.
