Ripple outlined a proposed XRPL Lending Protocol to standardize institutional credit execution for tokenized assets while keeping underwriting off-chain, targeting markets such as treasuries, stablecoins, and private credit.
Key Takeaways:
The XRPL Lending Protocol proposal would handle loan payments and tracking on the blockchain, while keeping credit approval decisions outside of it.This could allow institutions to use digital versions of assets as working capital across a range of markets.The plan still needs approval from network validators before it can move forward.Ripple wrote:
“The XRPL Lending Protocol is designed around a simple principle: institutions retain control over credit decisions, while the protocol standardizes how those decisions are executed.”
Vault and Lending Standards Remain Subject to Validator ApprovalSpecifications for the proposal are defined in XLS-65, which establishes the Single Asset Vault for pooling and managing a single asset, and XLS-66, which defines the Lending Protocol for originating and servicing loans. Both amendments remain subject to validator approval, while infrastructure providers and developers can begin integrating and testing the proposed system on devnet.
Ripple stated:
“The lending protocol matters not because it creates another yield product, but because it makes digital assets more productive. It gives institutions a way to treat onchain assets as working capital rather than static inventory.”
XRPL is presented as a public network with protocol-level standards and permissioned participation through credentials when needed. Ripple also pointed to XRPL’s more than a decade-long history supporting institutional settlement, arguing that lending, payments, collateral movements, treasury operations, and settlement flows can operate on shared infrastructure.
