XRP Ledger Validators Vote on Lending Amendments as Support Trails Threshold
XRP Ledger validators are currently voting on two amendments that would introduce single-asset vaults and fixed-term lending directly into the network's core protocol. The amendments, known as XLS-65 and XLS-66, would allow institutions to borrow on the blockchain, but support remains well below the level required for activation.
According to the XRP Ledger's amendment records, current support stands at 34–37% of the required 80%. An amendment must maintain support from more than 80% of trusted validators for two consecutive weeks before it can become active. Ripple's validator voted in favor of both amendments in August, but Ripple cannot approve the changes independently because validators decide whether to support each amendment.
The percentage can change as validators update their positions, making the threshold and subsequent two-week period more important than any single daily reading.
How the Proposed Lending System Would Work
XLS-65 would introduce Single Asset Vaults, which pool one type of asset from multiple depositors and issue vault shares representing proportional interest. A vault could hold XRP, Ripple USD (RLUSD), or another supported XRP Ledger asset. The vault manager could allocate pooled liquidity to lending or other financial services under predetermined rules.
XLS-66 would use that pooled liquidity to fund fixed-term loans. The proposed system relies on off-chain underwriting rather than automatic overcollateralization and liquidation. Institutions would conduct identity checks, assess borrowers, negotiate loan terms, and complete legal reviews outside the blockchain. The network would then record and execute agreed activities such as loan issuance, interest accrual, repayments, and defaults.
This structure reduces reliance on application-level smart contracts, but it does not eliminate credit, operational, or counterparty risk. Depositors could still lose money when borrowers default or when underwriting proves inadequate.
Ripple's Alliance with Clearpool and Cicada Partners
Ripple has formed an alliance with Clearpool and Cicada Partners to attract institutional capital. Clearpool would deploy closed private pools and handle the technical side for verified borrowers. Cicada Partners would verify fintech companies off-chain, assess risks, and monitor loan repayments.
Ripple itself would enter the pools as an investor on equal terms with other participants, providing initial liquidity. Ripple would participate as a limited partner and is not serving as a financial backstop, meaning it would not guarantee losses suffered by other participants.
The main settlement currency for the planned fund would be the regulated stablecoin RLUSD. RLUSD is expected to serve as the main credit asset in the Clearpool and Cicada fund. For security, RLUSD includes a Clawback function — a tool for forcibly returning funds when violations are detected.
The planned fund would provide RLUSD-denominated working-capital loans to fintech and payment companies. The companies have not disclosed the fund's target size or Ripple's commitment.
Clearpool is testing an institutional credit product on the XRP Ledger development network. The integration will use isolated markets managed by independent risk specialists to prevent problems from spreading across lending markets.
Some institutional pools may use permissioned domains and verified credentials, so retail participation is not guaranteed. The amendments could create new uses for XRP Ledger assets, but they would not automatically provide yield to every XRP holder.
Federal Reserve Master Account and BNY Mellon
Ripple, through its subsidiary Standard Custody, is awaiting a master account with the S. Federal Reserve. Approval of the master account would allow Ripple to remove BNY Mellon from cash processing and reduce RLUSD issuance or redemption times to minutes. BNY Mellon would continue to provide custody for S. Treasury bills (T-bills).
The Federal Reserve master-account application is separate from the lending vote. Approval could improve RLUSD settlement infrastructure, but the outcome and timing remain uncertain.
Security Audits and Next Steps
The lending code has undergone formal verification and independent security reviews. Halborn's re-audit found no critical or high-risk vulnerabilities. The review identified one medium-risk issue, two low-risk issues, and two informational findings. The reported matters were resolved, accepted, or acknowledged by Ripple's engineering team, according to the audit findings.
Security reviews address technical behavior, not whether borrowers will repay their loans.
The next formal milestone is validator approval. If either amendment crosses 80% support, it must hold that level for 14 days. Clearpool must also finish its development-network testing before moving its product to mainnet.
Impact on XRP
XRP would retain its network role by covering transaction fees and account reserve requirements. XRP Ledger transaction fees are destroyed rather than paid to validators. Greater lending activity could increase XRP fee consumption, but fees are normally very small, and the effect on total XRP supply would depend on sustained transaction volume.
XRP traded around 06 at the time of writing.