Ripple Launches XRPL Lending Protocol for On-Chain Credit Infrastructure

Ripple has introduced the XRPL Lending Protocol to provide on-chain credit infrastructure for tokenized assets. According to Foresight News, the protocol is designed around keeping credit assessment off-chain while standardizing and executing lending processes on-chain. Under the model, institutions conduct their own underwriting and compliance reviews, while the protocol standardizes execution steps including liquidity pooling, loan issuance, repayment, and default handling. The protocol consists of two components: a Single Asset Vault, which pools and manages a single asset on-chain, and a Lending Protocol, which issues loans with defined terms using the vault’s liquidity. These components correspond to the XLS-65 and XLS-66 proposals, which still require approval by validator nodes. At the infrastructure level, the protocol supports a subordinated capital mechanism in which the pool manager takes on risk exposure ahead of other liquidity providers. Developers can currently access and test the protocol on the devnet.