XRPL Enters Key Voting Phase for Native Lending Protocol

The XRP Ledger (XRPL) is on the cusp of a new phase focused on financing value as its proposed native Lending Protocol enters the validator voting phase.

This move aims to provide crypto holders with yield and businesses with efficient access to capital, separating underwriting from execution by relying on institutions to handle credit assessments off-chain.

Jasmine Cooper, head of product at RippleX, notes that infrastructure around tokenization has remained largely absent or fragmented. She agrees that execution does not necessarily have to be executed off-chain, saying 'Over time, I'd love to see more of the lifecycle move on chain.'

The proposed credit infrastructure consists of two complementary components: single asset vaults (XLS-65) for pooling and managing a single asset on the ledger and the lending protocol (XLS-66), which allows pooled liquidity from the vaults to be originated into fixed-term loans.