XRP Ledger Lending Protocol Activates with Ecosystem Support

The XRP Ledger's native lending protocol is nearing activation after receiving support from key ecosystem players. The platform xpmarket has voted in favor of the XLS-65 and XLS-66 upgrades, which will enable Single Asset Vaults and an on-chain lending protocol. This will allow users to generate yields and create liquidity pools directly on the blockchain.

The new protocol will be unsecured and assessed off-chain, similar to traditional bond markets. Unlike DeFi loans, these transactions won't require collateral. Developers are working on user interfaces for the new lending features, which are set to enhance the XRP Ledger's functionality.

While voting continues, with 28 validator approvals needed to finalize the upgrades, the community remains optimistic about the future of the native lending protocol. However, it's worth noting that XRP has been struggling lately, down 43% year-to-date and reaching an annual low near $1.01.