Ripple’s XRPL Lending Protocol Gains Validator Support, Moves Closer to Activation

Ripple’s XRP Ledger is approaching a major lending upgrade as validator support for the LendingProtocolV1_1 amendment reaches 62.86%. The proposal has secured 22 approvals from 35 validators, leaving seven additional votes required for activation.

According to XRPScan governance data, three additional validators endorsed the amendment over the past three weeks, joining Ripple-operated validators, the University of Waterloo, and UC Berkeley in supporting the proposal, which requires 80% approval for two consecutive weeks before activation.

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XRPL Lending Amendment Needs Seven More Validator Approvals

The proposed lending framework would introduce institutional credit services directly on XRPL through the XLS-66 lending standard. Its companion amendment, SingleAssetVault (XLS-65), has secured 23 approvals, representing 65.7% support.

Consequently, XLS-65 requires six additional votes to reach the activation threshold, with both amendments designed to enable fixed-term lending without mandatory crypto collateral or automatic liquidation mechanisms.

Borrowers would access loans under predetermined repayment schedules and interest conditions, while Ripple has tested the protocol on a private XRPL network using nine nodes configured with mainnet-equivalent hardware.

Under the proposed system, users could deposit XRP or RLUSD into Single Asset Vaults and receive ownership shares. Loan Brokers would assess borrowers outside the blockchain before recording loan transactions directly on XRPL.

Additionally, brokers would provide first-loss capital to cover initial losses when borrowers fail to repay their loans. Depositors could face losses if defaults exceed the protection provided by brokers.

XRP Holders Could Earn Interest Through Native Lending Pools

The proposed upgrade would give XRP holders another way to earn interest without relying on external blockchain bridges. Participants could deposit XRP into lending pools and receive returns based on borrower repayments.

Significantly, interest payments would depend on borrowers meeting their obligations rather than guaranteed returns. Vault withdrawals would follow a first-come, first-served process, subject to available liquidity. Asset issuers could also freeze supported assets, potentially suspending vault operations and related lending activities, while XRP traded near $1.04.

The protocol remains inactive until validators maintain the required approval threshold for two consecutive weeks. Activation would expand XRPL’s lending capabilities while exposing depositors to potential borrower defaults.

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