The XRP Ledger Foundation, through community lead and dUNL validator Vet, has unveiled a set of proposed amendments designed to introduce native lending, privacy, and digital identity features directly on the network. The proposals—XLS-65, XLS-66, XLS-0096, and XLS-70—aim to build a comprehensive DeFi stack at the protocol level, eliminating the need for external smart contracts, bridges, or intermediaries that can increase costs and security risks.
Native Lending and Institutional Credit: Amendments XLS-65 and XLS-66 focus on establishing a native lending protocol. XLS-65 introduces single-asset vaults that allow any user to deposit funds into liquidity pools and earn interest alongside institutional funds. XLS-66 enables institutional lending pools backed by RLUSD, Ripple’s native stablecoin. A key commercial driver is the official partnership between Ripple, DeFi platform Clearpool, and asset manager Cicada Partners, which will launch fixed-rate institutional credit lines directly on the XRP Ledger. This injects institutional capital into the ecosystem and increases total value locked (TVL).
Privacy and Delegation: Amendment XLS-0096 introduces “accountable” privacy using the Multi-Purpose Token (MPT) standard. It encrypts balances and transaction amounts from third parties while maintaining transparency for issuers and regulators. A Permission Delegation mechanism allows banks and funds to delegate operations on private DEXs to traders or bots without exposing private keys. Amendment XLS-70 adds digital identity verification with one-click regulatory compliance checks, protecting personal data from third parties.
These amendments build on the XRP Ledger’s existing infrastructure, which already includes an order book, an automated market maker (AMM), tokenization, and regulatory compliance controls. Vet noted that this infrastructure was built “across bull and bear cycles” so that once approved, retail users and large funds can access liquidity, loans, and data protection directly from their wallets.
The proposals are still in the proposal stage and require community consensus and validation before becoming active. If approved, they could strengthen XRP’s position in DeFi, reduce reliance on third-party protocols, enhance security, and provide a clearer path for institutional adoption.
