XRP Ledger validators have started voting on two protocol amendments, XLS-65 and XLS-66, which would introduce single-asset vaults and fixed-term lending directly into the network’s core protocol. According to amendment records, support currently stands at roughly 34% to 37%, well below the 80% validator threshold required for activation. An amendment must maintain more than 80% support for two consecutive weeks before it can go live on mainnet.
XLS-65 would create Single Asset Vaults that pool one type of asset from multiple depositors and issue vault shares representing proportional interests. XLS-66 would use that pooled liquidity to fund fixed-term loans, relying on off-chain underwriting rather than automatic overcollateralization and liquidation. Institutions would conduct identity checks, assess borrowers, negotiate loan terms and complete legal reviews outside the blockchain, while the ledger would record loan issuance, interest accrual, repayments and defaults.
The code has passed formal verification and independent reviews. Halborn’s re-audit found no critical or high-risk vulnerabilities, identifying one medium-risk issue, two low-risk issues and two informational findings, which were resolved, accepted or acknowledged by Ripple’s engineering team. Sherlock checks on XLS-66 and XLS-65 are also part of the process.
Product development is already underway. Clearpool is testing an institutional credit product on the XRP Ledger development network, with Cicada Partners sourcing borrowers and monitoring their financial condition. Ripple will participate as a limited partner, providing capital on comparable terms but not acting as a financial backstop or guaranteeing losses. The planned fund would provide RLUSD-denominated working-capital loans to fintech and payment companies.
The main settlement currency would be Ripple USD (RLUSD), which includes a Clawback function for forcibly returning funds if violations are detected. XRP would retain its network role by covering transaction fees and account reserve requirements. XRP Ledger transaction fees are burned rather than paid to validators, so greater lending activity could increase XRP fee consumption, though fees are normally very small.
Ripple is also seeking a Federal Reserve master account through its subsidiary Standard Custody, which could reduce RLUSD issuance or redemption times to minutes. BNY Mellon would continue to provide custody for U.S. Treasury bills backing RLUSD reserves. At the time of writing, XRP traded around $1.06, and no verified price movement was attributed directly to the lending vote.
