XRP Ledger validators have begun voting on XLS-65 and XLS-66 amendments, with current support levels at 34-37% of the required 80% threshold. According to recent reports, voting began after the code successfully passed a rigorous security audit by Sherlock and Clearpool started final testing of its technical demo on DevNet. The amendments would add native vaults and fixed-term institutional lending to the XRPL protocol, with activation remaining uncertain due to current support levels being well below the required threshold.
XLS-65 would introduce Single Asset Vaults that pool one type of asset from multiple depositors and issue vault shares representing proportional interest. These vaults could hold XRP, Ripple USD, or other supported XRP Ledger assets, with vault managers allocating pooled liquidity to lending or financial services under predetermined rules. XLS-66 would use pooled liquidity to fund fixed-term loans using off-chain underwriting rather than automatic overcollateralization and liquidation. The proposed system relies on institutions conducting identity checks, assessing borrowers, negotiating loan terms, and completing legal reviews outside the blockchain before network execution. RLUSD serves as the main settlement currency with a Clawback function for forcibly returning funds when violations are detected.
According to recent reports, Ripple has formed a pragmatic alliance with market leaders to attract institutional capital. Clearpool deploys closed private pools and handles the entire technical side for verified borrowers, while Cicada Partners acts as a strict gatekeeper verifying fintech companies off-chain, assessing risks, and monitoring loan repayments. Ripple itself enters the pools as an investor on equal terms with other investors, providing initial liquidity alongside other participants. The companies have not disclosed the fund's target size or Ripple's specific commitment amount, with the planned RLUSD credit fund remaining in testing and unable to use proposed native lending functions on mainnet until both amendments activate.
For ordinary XRP holders, the launch represents a significant opportunity to pool assets in Single Asset Vaults to generate real yield on equal terms with funds. Every lending transaction will burn network fees in XRP, creating additional demand for the token. XRP traded around $1.06 at the time of writing, with no verified price movement attributed directly to the latest lending vote. The effect on total XRP supply would depend on sustained transaction volume and should not be described as a major source of scarcity before real usage data exists.
According to recent reports, the lending code has undergone formal verification and independent security reviews, with Halborn's re-audit finding no critical or high-risk vulnerabilities. The review identified one medium-risk issue, two low-risk issues, and two informational findings that were resolved, accepted, or acknowledged by Ripple's engineering team. Ripple is accelerating fiat settlements through its subsidiary Standard Custody, awaiting a master account with the U.S. Federal Reserve to remove BNY Mellon from cash processing and reduce RLUSD issuance or redemption times to minutes. Additionally, the Batch feature is being introduced on XRPL to enable instant delivery-versus-payment transactions without interbank reconciliation.
