The LendingProtocolV1_1 proposal has officially entered the voting phase, with XRPL validators now actively voting on the amendment. As reported by the RippleX development team on Wednesday, September 30, 2026, this represents a significant milestone in the protocol's development timeline. The amendment introduces closed-ended vaults and cash-basis accounting for XRPL lending, marking a departure from existing open-ended vault structures that allow continuous deposits and withdrawals at any time. Voting opened October 1, 2026, but the process carries no guaranteed timeline, with the amendment requiring sustained support from more than 80% of trusted validators for two weeks without interruption. According to TradingView News, the XRP Ledger has now inched closer to launching its long-awaited native lending infrastructure through this procedural milestone.
The LendingProtocolV1_1 proposal establishes closed-ended lending vaults that move through subscription, investment, and redemption stages. According to the amendment record, assets can enter during subscription phases, brokers can originate loans during investment stages, and withdrawals occur during redemption periods. This represents a departure from existing open-ended vaults that allow users to enter and exit at any time, which can affect how gains are distributed among participants. The amendment establishes an operational distinction between two deposit types: open and closed, with open vaults handling pooled funds and shared custody while closed vaults function exclusively through predefined life cycles. During subscription, depositors contribute assets, receive ownership shares, and can still withdraw before the investment period begins. Once the investment period starts, the protocol blocks both deposits and withdrawals while pooled capital is made available for loans. The amendment also introduces the ability to create a second type of Single Asset Vault, expanding the pooling capabilities beyond the existing open-ended structure. As explained by developer Shota Natenadze, closed-ended vaults avoid timing problems by design: once the subscription window closes, no new shares can be minted, so there is no way to enter mid-term.
The proposal introduces cash-basis interest accounting that would recognize interest income only when borrowers actually make payments. As reported in the XRPL documentation, this represents a shift from the current design that recognizes scheduled interest when loans originate, including interest that has not yet been received. Under the new system, a vault's AssetsTotal would reflect interest received rather than future interest expected, affecting when income is recorded for accounting purposes. Developer Shota Natenadze explained that LendingProtocolV1_1 changes this so that interest is only recognized as income when payments are actually made, describing it as a more conservative and accurate accounting model. The proposed system ensures interest is accounted for only when payments are actually made, rather than scheduling future interest that may never be received.
The amendment requires consecutive approval of three related amendments bundled into the The RippleX development initiative. According to the documentation, if enabled, it would limit the creation of new loan brokers to closed-ended vaults, tying new lending activity to the updated structure. The proposed system uses fixed-term, uncollateralized loans without automated on-chain collateral or liquidation management. As explained by Shota Natenadze, LendingProtocol is the base lending engine: loan brokers, loan origination, repayment, default handling, and first-loss capital. The vote applies to changes within the proposed lending architecture on XRPL. Under XRPL's amendment rules, a proposal requires support from more than 80% of trusted validators for two weeks, with the current support level not yet disclosed. The lending framework cannot go live simply because the supporting software has shipped, as the amendment must hold supermajority backing for two weeks without interruption. If support dips to 80% or below at any point during that stretch, the countdown resets and the network starts over. As reported by RippleX, approving V1_1 alone would not suddenly create a functioning XRPL lending market, with all three amendments (SingleAssetVault, LendingProtocol and LendingProtocolV1_1) required for operational lending.
According to the documentation, there is also a software requirement for the implementation. Developers included LendingProtocolV1_1 in xrpld version 3.4.0, released September 16, 2026. Older xrpld releases without the amendment code can become amendment blocked and cannot validate ledgers, process transactions, join consensus, or vote on future amendments until upgraded. The base LendingProtocol amendment supplies loan creation, repayment processing, default handling and broker functions, while SingleAssetVault provides pools that hold a single asset such as XRP, trust line-issued tokens or Multi-Purpose Tokens. The amendment must activate before LendingProtocol and SingleAssetVault can proceed, and all three amendments must be approved before lending launches on mainnet. The release formally introduced LendingProtocolV1_1 to 'xrpld' on September 16, 2026, marking a significant step forward in the protocol's development timeline.
