Can XRPL Add Native Lending? Ripple Backs XLS-65 and XLS-66

Ripple has voted in favor of two $XRP Ledger amendments that would introduce native vaults and a lending protocol, though both proposals remain below the approval threshold. The proposals, XLS-65 and XLS-66, would add Single Asset Vaults and a lending framework to XRPL.

XLS-65 currently has about 40% validator support, while XLS-66 has more than 37%. Both remain below the 80% level required for activation, meaning the proposals have not yet secured approval.

What Are XLS-65 and XLS-66?

XLS-65 would create Single Asset Vaults, allowing users to pool a single asset type within a standardized XRPL structure. A vault could hold $XRP, RLUSD, tokenized U.S. Treasuries, or other XRPL-issued assets. Depositors would receive proportional claims on the assets held by the vault.

Moreover, XLS-66 takes the next step by establishing the proposed XRPL Lending Protocol. It would allow vault liquidity to fund fixed-term loans while recording loan terms, interest, repayments, and defaults on the ledger.

What Is the Difference Between XLS-65 and XLS-66?

The distinction comes down to liquidity and lending. XLS-65 creates the mechanism for pooling capital. XLS-66 uses that pooled liquidity to support loans.

The proposed XLS-66 system would also differ from collateral-based lending models. Borrowers would undergo credit checks, compliance reviews, legal assessments, and underwriting outside the ledger. The XRPL would then record and manage the agreed loan terms.

This approach separates credit decisions from blockchain settlement. Loan brokers would connect borrowers with available vault liquidity, while a first-loss mechanism could absorb an initial portion of losses following a default.

How Do XRPL Amendments Get Approved?

Ripple’s vote does not activate either amendment on its own. XRPL validators must independently decide whether to support a proposal. An amendment requires more than 80% support from trusted validators for two consecutive weeks before it can be activated on the mainnet.

Under the current default Unique Node List configuration, it requires at least 28 of 35 validators. The current support levels therefore show that voting remains underway rather than signaling an activation date.

Why This Could Matter for $XRP Utility

XLS-65 and XLS-66 would not automatically make $XRP a utility asset in a broader economic sense. Their worth lies in the functions they could enable on XRPL if validators approve them and users adopt them.

The proposed vault structure could allow $XRP to serve as an asset within pooled liquidity, while XLS-66 could provide a native mechanism to use that liquidity for lending.

That distinction matters because $XRP would not simply exist as an asset recorded on the ledger. Under the proposed framework, it could participate directly in a financial infrastructure layer that handles pooled assets and lending activity.

Related: $XRP Community Shifts Focus to XRPL Utility Ahead of Major Upgrades