Ripple announced on Monday, June 29, 2026, that developers can now test the XRPL Lending Protocol in a testing environment.
This move brings the blockchain closer to institutional on-chain borrowing and lending.
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The proposed credit infrastructure relies on technical specifications XLS-65 and XLS-66. These specifications aim to bring native lending functionality to the XRP Ledger (XRPL).
According to reports, the protocol has officially entered the network validator voting phase as of June 30, 2026.
If approved by validators, the dual upgrade will enable tokenized real-world assets (RWAs)—such as money market funds and commodities—to be deployed as working capital on the XRPL.
How the Protocol Works
The framework uses a Single Asset Vault for pooling assets and a Lending Protocol to dictate loan terms, servicing, and repayment logic.
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Under the proposed arrangement, the underwriting process stays off-chain, allowing lenders to evaluate creditworthiness privately without reflecting those decisions on the public ledger.
"This separation mirrors real financial infrastructure," Ripple said. The company noted that preserving this distinction allows the network to support diverse credit structures over time.
"By preserving that distinction, XRPL can support a wider range of credit structures over time, rather than hard-coding one lending model into a single application," Ripple added.
The protocol dictates that repayment schedules, interest calculations, and default conditions operate under predefined automated rules once a loan is originated.
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Ripple referenced public lending protocols such as Aave but argued that existing crypto-native governance models do not align with Wall Street's risk management procedures.
