XRP Ledger Validators Begin Voting on Native Institutional Lending Amendments

In Brief:

• XRP Ledger validators are voting on XLS-65 and XLS-66, which require 80% support before native institutional lending can activate.
• Clearpool will operate private lending pools, while Cicada Partners evaluates borrowers and Ripple provides initial liquidity under equal investment terms.
• Standard Custody seeks Federal Reserve access, while XRPL Batch transactions could accelerate RLUSD settlements and reduce interbank reconciliation requirements.

XRP Ledger validators have begun voting on XLS-65 and XLS-66, which would introduce lending infrastructure for institutional borrowers. Both amendments would place lending functions within XRPL’s core architecture. Consequently, businesses could access blockchain-based credit without relying on third-party smart contracts.

Support currently ranges between 34% and 37%, while activation requires approval from 80% of validators. That level must remain for two weeks before an amendment joins the main network. Sherlock completed a security audit before voting started. Additionally, Clearpool has entered the DevNet testing stage for its demonstration.

XLS-65 would introduce Single Asset Vaults, which combine assets under management rules. XRP holders could deposit tokens and receive returns from lending activity. Meanwhile, XLS-66 would establish a protocol for fixed-term institutional loans. It would connect approved borrowers with liquidity providers while recording transactions on XRPL.

This structure aims to reduce risks linked to external smart contracts. Moreover, every lending transaction would consume XRP through the network’s fee-burning mechanism.

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Clearpool and Cicada Partners Build the Lending Framework

Ripple has partnered with Clearpool and Cicada Partners to develop the framework supporting the proposed lending system. Clearpool will deploy private pools and manage operations for verified borrowers. Cicada Partners will assess applicants, evaluate risks, and monitor repayments outside XRPL.

Ripple will also invest in pools under the same conditions as other participants. Its involvement will provide initial liquidity without granting exclusive control. RLUSD will serve as the settlement currency within these pools. Additionally, its clawback function permits fund recovery when issuers identify qualifying violations.

Federal Reserve Access Could Accelerate RLUSD Settlements

Ripple is seeking faster access to traditional payment infrastructure through Standard Custody, its subsidiary. Standard Custody has applied for a master account with the United States Federal Reserve. Approval could enable direct access to central bank payment services.

Consequently, Ripple could process some RLUSD cash settlements without BNY Mellon as an intermediary. BNY Mellon would still safeguard Treasury bills supporting RLUSD reserves.

XRPL developers are introducing Batch functionality for coordinated transactions. Significantly, Batch could support delivery-versus-payment settlements without separate interbank reconciliation.

Validator approval remains decisive. Activation would unite institutional credit, XRP liquidity, RLUSD settlements, and fee burning within XRPL.

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