Ripple's long-awaited decentralized lending protocol for the XRP Ledger (XRPL) has cleared a major security milestone. A comprehensive re-audit conducted by blockchain security firm Halborn found no critical or high-severity vulnerabilities, confirming that all previously identified issues have been successfully resolved.
The review took place between mid-December 2025 and January 2026, focusing on code changes introduced after an initial audit in mid-2025. Halborn utilized a layered methodology including specification review, diff-based code analysis, manual inspection, and automated static analysis. The audit specifically targeted the implementation of the XLS-0066d lending standard, which enables on-chain, fixed-term, uncollateralized loans using pooled funds from Single Asset Vaults.
Halborn's report detailed five minor findings, all of which were transparently addressed or accepted by Ripple's engineering team. One notable bug—a missing validation that could allow a vault’s total assets to exceed its configured maximum due to loan interest accumulation—was fixed by Ripple prior to the formal audit process. Another issue, where users could theoretically create a LoanBroker on a frozen vault, was corrected by adding a freeze check in the transaction pre-claim stage.
The clean audit result represents a critical technical gateway for the protocol, removing the primary code-security barrier. The next step in the roadmap is an amendment vote by XRPL validators to enable the feature on the mainnet. If approved, the lending protocol would become a native DeFi primitive on XRPL, potentially attracting institutional participants seeking structured, on-chain credit products without the need for overcollateralization.
The successful re-audit has been welcomed by the XRP community, as it strengthens confidence in the security and readiness of one of the ledger's most ambitious expansions beyond payments into decentralized finance.
