XRP Ledger's Lending Protocol Enters Validator Voting, Potentially Attracting Institutional Capital

The XRP Ledger's lending protocol has reached a major milestone with its entry into validator voting. This development is expected to attract institutional capital and potentially reshape the DeFi infrastructure of XRP.

The protocol, known as XLS-66d amendment, introduces fixed-term loans and isolated vaults for professional lenders seeking predictable returns. These features are designed to address the needs of institutions, which prefer fixed terms and underwriting over pooled collateral and variable rates.

According to Edward Hennis, a Ripple engineer, this model offers 'institutional-grade yield' aimed at professional lenders seeking predictable XRP institutional yield returns. The protocol embeds lending logic directly into the ledger, removing many risks tied to standalone smart contracts.