Ripple announced on Monday the introduction of the XRPL Lending Protocol, designed to bring native credit infrastructure directly to the XRP Ledger.
The protocol aims to enable institutional on-chain borrowing and lending by standardizing execution while keeping credit judgment off-chain.
>>> Svitolina to Face Snigur in All-Ukrainian Wimbledon First Round
According to Ripple, the technical framework relies on two complementary components: the Single Asset Vault and the Lending Protocol.
These components are defined under technical specifications XLS-65 and XLS-66, which remain subject to validator approval.
The system allows tokenized real-world assets—including treasuries, stablecoins, money market funds, commodities, and private credit—to be deployed as productive working capital.
The Single Asset Vault provides a standardized structure for pooling an asset, while the Lending Protocol enables that pooled liquidity to be originated into loans with defined terms, servicing, and repayment logic.
Addressing Gaps in Blockchain Credit Systems
Ripple noted that the protocol addresses a major gap in current blockchain systems, where separate applications build isolated borrowing rules, liquidation logic, and risk models.
>>> Ukraine Drone Strikes Hit Russian Satellite Center near Moscow
By treating credit as infrastructure at the protocol layer, the new framework provides a unified structure for institutions evaluating credit activity.
Under this design, institutions maintain full control over credit decisions, conducting underwriting, legal documentation, and regulatory compliance off-chain.
Once terms are mutually agreed upon, the blockchain natively enforces loan execution, interest calculations, repayment schedules, and default conditions.
The protocol also accommodates pre-approved compliance checks for participants.
>>> Montreal City Services Adjust Schedules for Canada Day Holiday
Lenders and borrowers must complete these checks before accessing a pool, with verifiable credentials determining who can participate and under what specific conditions.
