XRPL Adds Native Credit with Fixed-Term Lending

The XRP Ledger is set to introduce its first native credit system through two amendments, XLS-65 and XLS-66. These amendments would enable fixed-term, fixed-rate lending directly on the ledger, without external smart contracts. The design favors underwritten credit, permissioned access, and traditional bond desk mechanics over DeFi-style lending.

The proposed system uses Single Asset Vaults to pool deposits of a single asset, such as XRP or RLUSD, from multiple depositors. Vault operators control parameters like asset type, vault size, and depositor access. The Lending Protocol, enabled by XLS-66, allows borrowers to take fixed-term loans funded by the pooled liquidity.

The design internalizes lessons learned from previous uncollateralized lending attempts in crypto, including underwriting quality and lender responsibility for first-loss capital. This approach prioritizes institutional credit markets over DeFi's permissionless model.