The XRP Ledger has moved closer to introducing native lending services after its proposed XLS-66 Lending Protocol gained additional validator support. According to XRPL validator Vet, the amendment secured two more Yes votes, bringing the total to 21 approvals from 35 trusted validators, or 60% support. The protocol still needs eight additional votes to reach the required 80% threshold and begin a mandatory two-week activation period.
XLS-66 is designed to enable fixed-term lending directly on the XRP Ledger through agreements managed by loan brokers. Unlike many decentralized lending platforms, the proposed framework would allow borrowing without cryptocurrency collateral. Instead, loan brokers would evaluate borrowers, set lending conditions, and manage repayment agreements. The system would involve three main participants: depositors supplying digital assets to lending pools, brokers assessing borrowers, and borrowers receiving funds and repaying on schedule.
Supporters argue the upgrade could unlock significant capital and liquidity on the XRP Ledger and is anticipated by both institutional and retail users. Vet described it as the biggest amendment to unlock capital and liquidity on the network, adding that a credit wave could be coming to XRP if activation succeeds.
Related amendments are also advancing. XLS-65, which would introduce Single Asset Vaults for pooling deposited assets, has secured 23 approvals from 35 validators, representing approximately 65.7% support. It requires six additional votes to reach the 80% supermajority threshold. Meanwhile, LendingProtocolV1_1, which introduces improvements involving closed-ended vaults and updated interest accounting, currently holds 21 approvals and also needs eight more votes.
All three amendments remain below the activation threshold. Each proposal must maintain at least 80% support throughout its two-week activation period before the changes can be implemented on the XRP Ledger.
