XRPL Protocol-Level Lending Markets Set for January Vote; XRP Reclaims $1.90

The Lede

The XRP Ledger (XRPL) is weeks away from its most significant DeFi upgrade to date. RippleX developers have signaled that XLS-66d, the amendment introducing a native lending protocol, is expected to enter validator voting by January 2026. Unlike the smart contract-based money markets seen on Ethereum (Aave, Compound), this update bakes lending primitives directly into the ledger’s consensus layer.

Markets reacted swiftly to the prospect of yield-bearing utility for the asset. XRP climbed 5% to $1.91 in the last 24 hours, outpacing broader market consolidation.

Why Protocol-Level Matters

In EVM ecosystems, lending protocols are applications on top of the chain, vulnerable to smart contract exploits and admin key risks. The XRPL approach, codified in amendments XLS-64d, XLS-65d, and XLS-66d, integrates lending as a native transaction type.

This architecture explicitly targets institutional capital rather than retail speculation. The protocol enables Single-Asset Vaults (SAVs) where terms are fixed (e.g., 30-day maturity, 5% fixed rate) and underwriting occurs off-chain. This effectively creates an on-chain settlement layer for traditional credit agreements, removing the rehypothecation risks common in algorithmic DeFi pools.

"A clear indication that it is ‘real credit,’ not a DeFi gambling pool… loans will have durations ranging from 30 days to 180 days.", Edward Hennis, Ripple Developer

The Institutional Credit Pivot

This deployment marks a structural pivot for Ripple. For a decade, XRP was marketed as a bridge currency for cross-border settlements. The combination of native lending and the recently launched mXRP liquid staking (via the XRPL EVM sidechain) repositions the asset as collateral for institutional finance.

The workflow is designed for compliance: banks and fintechs can negotiate loan terms legally off-chain, then use the ledger solely for immutable settlement and liquidity flow. This aligns with the wider "RWA" (Real World Asset) trend, where credit issuance moves on-chain but risk management remains with regulated entities.

What’s Next

Validators must pass the amendment with an 80% supermajority sustained for two weeks. If approved in January, the activation could unlock billions in dormant XRP liquidity currently sitting in non-yield-bearing wallets.