- Ripple’s XRPL lending proposal has gained support, reaching 22 of the 29 required votes.
- The system aims to provide banks with access to uncollateralized loans.
Ripple’s proposed lending system for banks and payment companies is moving closer to launch after gaining additional support from XRP Ledger validators. The proposal has secured 22 votes, up from 19 in mid-October, but still needs seven more approvals before the activation countdown can begin.
The system aims to give financial institutions access to liquidity through the XRP Ledger (XRPL), offering payment companies another way to manage cash while cross-border transactions are being settled.
XRP Ledger Lending Proposal Needs 29 Validator Votes
The XRP Ledger uses an amendment process to introduce major network changes. For an amendment to become active, at least 29 of the network’s 35 default-list validators must support it for two consecutive weeks.
As of November 12, the LendingProtocol amendment and its first update, LendingProtocolV1_1, had received 22 votes each. The SingleAssetVault amendment, which creates the pools used to hold deposited funds, had secured 23 votes.
SingleAssetVault therefore needs six more votes, while both lending amendments need seven. The lending system cannot launch until the required lending and vault amendments meet the approval threshold.
The latest figures show an increase from October 19, when LendingProtocol had 19 votes and SingleAssetVault had 21. Although support has grown, public records do not identify which validators changed their positions.
How Ripple’s XRP Ledger Lending System Will Work
The proposed system allows lenders to deposit XRP or other supported tokens into vaults. Loan brokers can then use those funds to issue loans to borrowers for fixed periods.
Unlike traditional crypto lending platforms, the proposed system does not require borrowers to provide collateral. Instead, it relies on off-chain underwriting and risk management to assess borrowers and determine their ability to repay.
Loan brokers must also contribute first-loss capital, which absorbs initial losses if borrowers fail to repay. This provides some protection for depositors, but their funds still depend on the broker’s ability to assess credit risks and manage loans responsibly.
Ripple has presented the system as a potential liquidity solution for payment companies that need access to funds while waiting for cross-border transactions to settle.
Developers Prepare Additional Lending Improvements
Development work is continuing while the proposed amendments await validator approval.
On November 4, developers submitted pull request #8685, which proposes a third amendment called LendingProtocolV1_2. The update aims to prevent conflicting loan transactions involving the same broker.
Under the proposed change, a transaction that opens a loan and its associated escrows would fail together if another loan from the same broker is processed first. This would help maintain consistency when multiple loan requests are submitted.
Another development came on November 4, when a code fix addressing issues in the lending system went live at ledger 108,112,129. The update repaired parts of the lending code before the feature became available for use.
When Could XRP Ledger Lending Go Live?
The lending system cannot begin its activation countdown until the required amendments receive at least 29 votes each. Both the lending protocol and SingleAssetVault must then maintain that support for two consecutive weeks.
If validators meet these requirements, the amendments can become active and clear the way for the lending system to launch.
The proposal would expand the XRP Ledger’s role beyond payments and asset transfers by introducing a lending framework for institutional users. However, its launch still depends on securing enough validator support and maintaining it through the required approval period.
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