XRPL Voting Begins on Native Credit Markets Proposal

The XRP Ledger is taking a significant step towards establishing native credit markets without relying on external smart contracts. The XRPL Lending Protocol has entered validator voting, marking a key phase in its development. This move will enable institutions to access compliant liquidity, working capital, and asset financing.

RippleX's design separates off-chain credit checks from on-chain repayment, interest, and default execution. Institutions will handle underwriting, legal review, credit risk, and compliance checks outside the blockchain, while the XRP Ledger will enforce loan terms and repayment schedules.

The proposed system has two main components: Single Asset Vaults (XLS-65) and the Lending Protocol (XLS-66). The latter allows pooled liquidity to move into fixed-term loans with defined servicing and repayment terms. Compliance controls are also in place, including verifiable credentials that determine who can participate and under what conditions.

The proposals are not live on mainnet yet, but infrastructure providers and developers can test the lending system on devnet. The XRPL Lending Protocol's design has been audited by Halborn, which found no critical or high-risk flaws.