Ripple proposes XRP Ledger lending protocol

• Ripple proposed a lending protocol for the XRP Ledger that would let institutions borrow digital assets without selling token holdings.
• The proposal supports lending markets for tokenised assets, including US Treasuries, stablecoins and private credit, while keeping credit decisions off-chain.
• The protocol must be approved by XRP Ledger validators before it can be activated on the main network.

Ripple proposed a lending protocol for the XRP Ledger that would allow institutions to borrow digital assets without selling holdings, while supporting tokenised assets including US Treasuries, money market funds, stablecoins and private credit.

The proposal comes as institutional interest in tokenised real-world assets grows, with Ripple arguing that blockchain-based lending and collateral management have developed more slowly than digital asset issuance and transfers.

“According to Ripple, this structure was intentionally designed to keep underwriting and regulatory requirements under the control of financial institutions while using the blockchain for standardised execution.”

Ripple said lenders and borrowers would negotiate loan terms, complete compliance checks and assess creditworthiness off-chain, while the XRP Ledger would automate interest calculations, repayments, loan servicing and default management through Single Asset Vaults and a dedicated lending protocol.

The company said participation would require identity verification through permissioned credentials, while the proposal assigns first-loss capital at the lending facility level, and as Ripple is privately held there was no share price reaction to report.

Ripple said the technical specifications, published as XLS-65 and XLS-66, must be approved by XRP Ledger validators before activation on the main network, with developers able to test the framework on the XRPL devnet in the meantime.

The proposal follows reports that X Money is using banking infrastructure provided by Cross River Bank, a Ripple banking partner, although neither company has announced plans to integrate XRP (CRYPTO:XRP) or other cryptocurrencies into the payments platform.

At the time of reporting, XRP price was $1.03.