The XRP Ledger’s proposed native lending system is moving closer to possible mainnet activation as more trusted validators back the amendments required to introduce lending and single-asset vaults.
As of November 10, the LendingProtocol amendment had secured 22 of 35 validator votes, while the SingleAssetVault amendment had received 23.
Both proposals still remain below the threshold required for activation.
Under XRP Ledger governance rules, an amendment must maintain more than 80% support from trusted validators for two consecutive weeks before it can activate on mainnet.
XRPL lending proposal moves closer to required threshold
According to the XRP Ledger amendment tracker, LendingProtocol currently has support from 22 of 35 trusted validators.
That represents approximately 62.9% support.
SingleAssetVault has received 23 votes, equivalent to around 65.7%.
Both amendments need at least 29 supporting validators before the two-week activation countdown can begin.
That means LendingProtocol currently needs seven additional votes, while SingleAssetVault needs six.
Validator support must remain above 80% for two weeks
Reaching 29 votes would not immediately activate the lending features.
Once more than 80% of trusted validators support an amendment, that level must remain in place for two consecutive weeks.
If support drops below the required threshold during that period, the countdown resets.
The two-week rule is designed to ensure that an amendment has sustained network consensus rather than only temporary support.
LendingProtocolV1_1 is also gaining support
A third amendment known as LendingProtocolV1_1 has also received 22 validator votes.
The proposal introduces additional changes to the way lending vaults operate.
It also changes how interest income is recorded.
Rather than recognizing all scheduled interest when a loan is first issued, the updated design would record interest as borrowers actually make payments.
This could make lending accounting more closely reflect realized cash flows.
XRPL Lending Network backs the amendments
XRPL Lending Network confirmed on November 11 that its validator is supporting both the LendingProtocol and SingleAssetVault amendments.
The project said it is actively testing the proposed technology and developing infrastructure around the lending system.
It is also providing feedback to XRP Ledger developers.
However, the group acknowledged that its own validator vote is not enough to activate the features.
More trusted validators still need to support the amendments.
Validator support has increased since October
The proposals have gradually gained support over recent months.
On October 19, LendingProtocol had 19 supporting validators.
SingleAssetVault had 21.
The latest figures of 22 and 23 show that additional validators have moved in favor of the proposals.
Ripple’s own validator had already backed both amendments in August.
At that time, support stood at roughly 37% for lending and 40% for single-asset vaults.
How would native lending work on XRP Ledger?
The proposed lending system is built around two connected amendments commonly associated with XLS-65 and XLS-66.
Together, they would introduce pooled asset vaults and fixed-term lending directly into the XRP Ledger.
The SingleAssetVault component would allow users to place supported assets into shared vaults.
These assets could include XRP, RLUSD and other eligible tokens.
Users would receive vault shares based on the amount they contribute.
Vault shares would represent a claim on pooled assets
When a user deposits an asset into a vault, the system would issue vault shares representing their proportional ownership of the pool.
For example, a user contributing 10% of a vault’s value could receive a corresponding share of the vault, subject to the protocol’s accounting rules.
Those pooled funds could then be made available for lending through the native protocol.
The model is similar in principle to pooled lending systems used elsewhere in decentralized finance, but it would be built directly into XRPL’s protocol architecture rather than relying entirely on external smart contracts.
Loan brokers would issue fixed-term loans
The Lending Protocol would introduce a role known as a loan broker.
Loan brokers would be able to use funds from the shared vaults to issue fixed-term loans.
Repayment obligations and related transactions would be recorded directly on the XRP Ledger.
This would create a more structured lending system where borrowers receive loans for defined periods rather than relying on continuously variable lending positions.
XRPL lending could support uncollateralized loans
One of the most notable features of the proposal is support for uncollateralized lending.
Many DeFi lending platforms require borrowers to deposit cryptocurrency worth more than the amount they borrow.
XRPL’s proposed system would allow loans to be issued without requiring onchain collateral in every case.
Instead, loan brokers would evaluate borrower creditworthiness outside the blockchain.
That gives the broker an important role in deciding who receives credit.
Offchain credit assessment introduces additional risk
Uncollateralized lending can improve capital efficiency because borrowers do not need to lock up large amounts of crypto.
However, it also creates credit risk.
If a borrower fails to repay, there may be no large onchain collateral position available for automatic liquidation.
Loan brokers would therefore need systems for assessing borrowers and managing defaults.
This makes the quality of broker underwriting an important part of the lending model.
First-loss capital could protect vault depositors
The design includes a first-loss capital mechanism.
Under this structure, loan brokers can contribute funds that absorb an initial portion of borrower losses.
The idea is to align the broker’s incentives with those of depositors.
If poorly underwritten loans default, the broker’s first-loss capital would be affected before losses fully reach the wider vault.
This can provide some protection to users supplying liquidity.
Native lending has already entered developer testing
Developers have been experimenting with the proposed lending tools even before the amendments receive final mainnet approval.
An October hackathon organized by XRPL Commons included testing of native lending infrastructure.
This allows developers to identify technical issues and build applications around the system before activation.
Testing ahead of approval can also make it easier for wallets, interfaces and lending services to support the feature once it becomes available.
LendingProtocolV1_1 would add closed-ended vaults
The V1_1 amendment introduces another type of vault structure.
Closed-ended vaults would operate through specific phases such as:
- Subscription
- Investment
- Redemption
This differs from continuously open liquidity pools where users may be able to enter or exit at almost any time.
A closed-ended structure could be useful for fixed-term lending products or institutional-style investment arrangements.
Interest accounting would become more conservative
The updated proposal would also change when vaults recognize interest.
Instead of recording all expected interest when a loan is originated, the system would recognize interest when borrowers actually make payments.
This reduces the risk of vault accounting showing income that has not yet been received.
If a borrower later fails to make payments, the vault would not already have treated all expected interest as realized.
That could make vault valuations more accurate.
XRPL aims to add lending without traditional smart contracts
One of the broader implications of the proposal is that lending functionality would become part of XRP Ledger itself.
Many blockchain lending protocols are deployed as smart contracts on networks such as Ethereum.
XRPL uses a different architecture.
By adding lending through native amendments, the functionality can become part of the network’s core protocol rules.
Supporters argue that this could reduce some of the complexity associated with external smart contract systems.
Native functionality does not eliminate lending risk
Even if lending is implemented at the protocol level, financial risks remain.
Users could still face:
- Borrower defaults
- Broker failures
- Liquidity risk
- Interest-rate risk
- Vault accounting problems
- Operational mistakes
Protocol-level implementation may change how the system is built, but it does not guarantee that every loan will be repaid.
Users would still need to evaluate the lending products and intermediaries they interact with.
XRPL Lending Network plans a $10,000 rewards initiative
Alongside its validator support, XRPL Lending Network said it is preparing a $10,000 rewards program denominated in XRP.
The initiative will focus on educational content related specifically to XRPL lending and supporting infrastructure.
Further details have not yet been released.
The program is intended to help users better understand the proposed system while validators continue considering the amendments.
XRP Ledger Foundation launches $40,000 education program
The XRP Ledger Foundation has separately announced a broader education initiative.
The program, called XRP Ledger Education Month, offers up to $40,000 in awards for educators and content creators.
Participants can produce material about upcoming amendments as well as the XRP Ledger’s existing technology.
Eligible content can include:
- Videos
- Tutorials
- Articles
- Social media threads
- Graphics
- Technical explainers
The foundation said submissions will be judged on clarity, accuracy, creativity and community value.
Lending education could become important before activation
Native lending introduces concepts that may be unfamiliar to many XRP Ledger users.
These include vault shares, loan brokers, first-loss capital and fixed-term lending.
Educational programs could therefore help users understand how the system differs from both traditional bank lending and existing DeFi protocols.
The timing is significant because the amendments have not yet activated.
Users and developers have an opportunity to study the system while validator voting continues.
Why validator consensus matters
XRP Ledger amendments do not activate simply because developers release the code.
Trusted validators signal whether they support enabling a new feature.
The 80% threshold is intended to ensure that major protocol changes have broad agreement across the validator set.
This reduces the likelihood that a controversial feature is activated without sufficient network support.
It also means activation timing can remain uncertain even after software support becomes available.
The proposals are not active yet
Despite the increase in validator support, native lending is not currently active on XRPL mainnet.
Both main amendments remain below the required threshold.
Users therefore cannot assume that lending vaults or the full protocol are already available as finalized network features.
Further validator votes are required before the two-week activation period can even begin.
What would happen after the threshold is reached?
If either amendment receives support from at least 29 of the current 35 trusted validators, the two-week activation countdown would begin.
Support would need to remain above the required level throughout that period.
If it does, the amendment can activate automatically according to XRPL’s amendment process.
If support falls below 80%, the countdown stops and must begin again after enough validators return their support.
Lending and vault amendments depend on each other
The proposed system combines several components.
SingleAssetVault provides the infrastructure for pooled assets.
LendingProtocol provides the mechanism for using those funds to make loans.
This means users should not evaluate the amendments in isolation.
The practical lending experience depends on how the different pieces work together after activation.
Validator voting is the next major milestone
For now, the most important development is the validator vote count.
LendingProtocol currently needs seven additional supporting votes.
SingleAssetVault needs six.
LendingProtocolV1_1 also remains below the activation threshold.
Any increase in validator support could move the network significantly closer to beginning the two-week countdown.
What users should watch next
Several developments will determine whether XRPL native lending reaches mainnet.
The most important are:
- Validator vote counts
- Whether either amendment reaches 80%
- The start of the two-week activation countdown
- Additional testing results
- Changes introduced through LendingProtocolV1_1
- Wallet and application support
- Education initiatives around the new lending model
Developers may also continue refining tooling while validators assess the proposals.
Final thoughts
The XRP Ledger’s native lending system is gradually moving closer to activation, but validator consensus has not yet reached the required level.
LendingProtocol currently has support from 22 of 35 trusted validators, while SingleAssetVault has 23.
Both need at least 29 validators before a two-week approval countdown can begin.
If eventually activated, the system would introduce shared asset vaults, fixed-term lending, loan brokers and support for uncollateralized credit directly within XRPL.
The proposal could significantly expand the financial services available on the network.
For now, however, the project remains in the governance and testing stage.
The next major signal will be whether enough validators join the current supporters to push the amendments above the 80% threshold.
