The XRP Ledger (XRPL) is advancing toward introducing native lending , a development that has captured significant attention within the community. XRP commentator Zach Rector described the progress as “massive for XRP,” highlighting the potential impact of the upcoming protocol enhancements. The discussion was sparked by a post from XRPL validator Vet, who shared updates on the ongoing development of the XRPL lending protocol. At the center of this effort is Ripple engineer Ed Hennis, leading work on XLS-66, a proposal designed to implement fixed-term lending directly on the ledger. Rector suggested that this evolution could significantly broaden XRP’s utility beyond its established payment use cases. Protocol Update and GitHub Progress Vet emphasized a recent GitHub merge, PR #6161, which refines XLS-66’s lending code. The update does not alter the protocol’s functionality but optimizes the implementation for efficiency and maintainability. Ed Hennis is cooking with the upcoming lending protocol for the XRP Ledger. pic.twitter.com/1oSXY6zyzm — Vet (@Vet_X0) January 12, 2026 The changes remove redundant code and improve processing efficiency, correct typographical errors, eliminate unused variables, simplify loan withdrawal and balance logic, and enhance documentation to align more closely with the XLS-66 specification. These improvements strengthen the foundational code, preparing XRPL’s lending functions for a smoother transition toward production readiness. Key Features of XLS-66 XLS-66 is designed to support uncollateralized, fixed-term loans with predetermined interest rates using pooled liquidity in on-chain vaults. Unlike most DeFi protocols that rely on overcollateralization, this approach allows predictable repayment schedules and interest structures. Borrowers can benefit from grace periods and are subject to penalties for late payments, while early repayment and overpayment are also supported. The system incorporates first-loss protection to reduce lender risk and provides full on-chain transparency without requiring custom smart contracts. By enabling these functions, XRPL could host structured credit markets using XRP and Ripple’s stablecoin RLUSD, expanding the ledger’s applications beyond traditional payments. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 Integration With RippleX Framework XLS-66 builds on the previously proposed XLS-65 standard, which introduces Single Asset Vaults. These vaults pool deposits from multiple users while restricting each vault to a single asset, reducing cross-asset risk. XLS-66 layers lending capabilities atop these vaults, facilitating institutional-style credit issuance on-chain. While underwriting remains off-chain, enforcement occurs directly on the ledger, combining the security of on-chain settlement with institutional credit management practices. Implications for the XRP Community For over a decade, XRPL’s development has primarily focused on fast, low-cost, and reliable payments. Although this approach established XRP’s reputation in cross-border transactions , it limited the ledger’s competitiveness in DeFi markets. The addition of native lending represents a shift toward broader financial functionality. By embedding credit operations into the protocol, XRPL aims to increase liquidity, strengthen utility, and create new opportunities for institutional finance use cases. This context clarifies why XLS-66’s progress has attracted strong attention. Community members and observers see the update as an important step that positions XRP to play a larger role in on-chain credit markets, signaling a strategic evolution of the ledger’s capabilities. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post Ripple Engineer Is Cooking Something Big on the XRP Ledger appeared first on Times Tabloid .
