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Ripple’s proposed lending system on the XRP Ledger is moving closer to activation as validator support increases. The LendingProtocol amendment has secured 22 votes, while SingleAssetVault has received 23, leaving both short of the required 29 approvals.
The XRP Ledger (XRPL) requires more than 80% approval from its 35 default-list validators for two consecutive weeks before an amendment activates. As of November 11, LendingProtocol and LendingProtocolV1_1 each held 22 affirmative votes, while SingleAssetVault had 23.
On October 19, the respective figures stood at 19 and 21, indicating additional support over three weeks. LendingProtocol needs seven more approvals, while SingleAssetVault requires six. Both must satisfy the threshold, as lending operations depend on the vault infrastructure.
The proposed framework allows institutions to deposit XRP or other supported tokens into SingleAssetVault pools. Loan brokers then distribute funds through fixed-term lending arrangements without requiring borrower collateral.
XRP Ledger’s documentation says that the system “relies on off-chain underwriting and risk management.” This structure places responsibility on brokers to evaluate borrower creditworthiness and maintain first-loss capital, exposing depositors to potential losses if borrowers default.
Ripple has positioned the framework for banks and payment companies requiring liquidity during cross-border settlement processes.
Development continues despite pending validator approval. A November 4 GitHub pull request, #8685, proposes LendingProtocolV1_2, introducing coordinated transaction handling for loan creation. The proposed change would allow loan-opening transactions and associated escrows to fail together when another loan involving the same broker completes first.
Separately, a lending-related cleanup amendment activated November 4 at ledger 108,112,129, addressing existing code issues before the lending framework becomes available.
Not every proposed XRP Ledger improvement gained validator backing. ConfidentialTransfer, designed to conceal token balances, declined from 22 to 21 approvals. DynamicMPT, which would enable token issuers to modify certain settings after issuance, dropped from 18 to 16 votes. The public dashboard provides aggregate voting totals but does not identify individual validators changing their positions.
Also Read: XRP Ledger Activates Permission Delegation After Validator Vote