XRP Ledger developers released xrpld version 3.4.0 on Sept. 16, introducing two amendment packages: LendingProtocolV1_1 and fixCleanup3_4_0. The release adds code for proposed native lending functions but does not activate them on mainnet.
The LendingProtocolV1_1 amendment introduces closed-ended Single Asset Vaults with fixed subscription, investment, and redemption periods. During subscription, depositors can add assets and withdraw. During investment, deposits and withdrawals are blocked while the pooled capital can fund loans. Redemption begins after the investment period and allows depositors to recover their share. The encoded investment period can be as short as 60 seconds and less than 30 years, meaning an XRP depositor could voluntarily commit liquidity for a term ranging from minutes to decades. Once active, newly created loan brokers would only be attached to closed-ended vaults, while existing open-ended lending objects would retain their original behavior.
The amendment also shifts loan accounting to a cash basis. Under the previous whole-life model, scheduled interest was recognized at origination before the borrower paid. Under LendingProtocolV1_1, new vaults recognize interest only when borrowers actually pay, reducing the chance that the protocol must unwind income after missed payments. Credit risk remains off-chain, with underwriting and recoveries still outside the ledger.
The second amendment, fixCleanup3_4_0, hardens several transaction paths. It includes fixes for Single Asset Vaults, Automated Market Makers, Multi-Purpose Tokens, NFTs, escrow, permissioned trading, credentials, and signing. One stated fix prevents an AMMClawback transaction from burning LP tokens when MPT rounding reduces the recovery amount to zero. The release also assigns different signing hash prefixes to counterparty and sponsor signatures to prevent replay across roles.
Validator support remains below activation requirements. A Sept. 17 snapshot showed SingleAssetVault at 16 of 35 trusted-validator votes and LendingProtocol at 13 of 35, below the displayed threshold of 28. XRPL’s amendment process requires more than 80% support from trusted validators continuously for two weeks before rules become active. The XRP Ledger Foundation now distributes signed Debian and RPM packages through packages.xrplf.org and has urged server operators to upgrade as soon as possible.
For XRP holders, the proposed mechanism is voluntary. Deposits locked in an XRP-denominated vault would be unavailable until redemption, but XRP held outside the vault remains unaffected. Whether the system creates lasting XRP demand depends on later adoption: applications must launch vaults, depositors must supply XRP, and borrowers must create recurring demand for XRP-denominated credit. On-chain indicators such as XRP-denominated vault deposits, loan originations, repayments, and renewed participation would be needed to confirm a durable market.
