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XRPL Opens Devnet Tests for Native Lending Protocol

Validator approval would let institutions originate fixed-term loans enforced by the ledger with underwriting kept off-chain.

Overview

  • Developers began testing Ripple’s dual upgrade of XLS-65 Single Asset Vaults and XLS-66 Lending Protocol on the XRPL devnet as the validator vote continues.
  • XLS-65 creates a vault that pools a single token and XLS-66 turns that pooled liquidity into fixed-term, uncollateralized loans with repayment interest and default rules enforced on-chain.
  • Credit decisions, identity checks, and legal underwriting remain off-chain so banks and asset managers keep control over borrower assessment before loans hit the ledger.
  • The code has undergone formal verification and a Halborn re-audit that found no critical or high-severity flaws and addressed lower-severity issues, but mainnet activation still needs sustained validator support and adoption by institutions.
  • Ripple positions the change as a way to put tokenized real-world assets and stablecoins to work for short-term liquidity and treasury needs, offering a compliance-oriented alternative to existing DeFi lenders if the amendments pass and firms commit capital.