Overview
- Ripple opened developer testing for the XRPL Lending Protocol on devnet after publishing two technical specs, XLS-65 (Single Asset Vaults) and XLS-66 (Lending Protocol).
- The design splits roles so licensed lenders perform off‑chain underwriting, legal review and compliance while the ledger enforces loan origination, interest accrual, repayment and defaults.
- Activation on mainnet requires sustained support from the XRPL validator set — more than 80% approval for 14 consecutive days — and the amendment vote is ongoing.
- Security work ahead of any launch included formal verification, a Halborn re‑audit that found no unresolved critical flaws after fixes, and a bug‑bounty program to surface remaining issues.
- The protocol targets banks, payment providers and treasuries looking to use assets such as RLUSD and tokenized Treasuries as short‑term working capital, but it leaves real credit risk tied to off‑chain underwriting and faces competition from existing lending platforms.