XRP Ledger eyes native lending with groundbreaking XLS-66 proposal
A new proposal could bring native XRP lending directly to the XRP Ledger (XRPL). The initiative, called XLS-66, aims to introduce fixed-term and fixed-rate loans without relying on external smart contracts. If approved, it would mark a significant expansion of the network's financial capabilities.
The proposal is currently under review by XRPL validators, who must approve it with an 80% supermajority before activation. Meanwhile, the total stablecoin supply on XRPL has already exceeded $570 million since December, signalling growing activity on the network. The XLS-66 amendment would embed a lending framework straight into the XRPL protocol. This design eliminates the need for asset wrapping, bridging, or third-party smart contracts. Instead, users could access fixed-term and fixed-rate loans directly on-chain.
Privacy features are also part of the plan. Zero-knowledge proofs would shield user details during lending operations, adding a layer of confidentiality. The amendment's success, however, depends on validator support—over 80% of weighted votes are required for activation. The exact number of active validators fluctuates but typically exceeds 100, according to data from xrpl.org.
Evernorth, a key player in the XRPL ecosystem, has announced plans to launch native XRP lending if the proposal passes. The firm holds 473 million XRP in its treasury and intends to deploy these funds into the lending market. This move could inject substantial liquidity into the system.
Currently, more than half of all XRPL activity stems from payment transactions. The introduction of native lending might further diversify usage and attract new participants to the network. The XLS-66 amendment remains under review, with validators yet to cast their votes. If approved, it would allow fixed-rate XRP loans to operate natively on the ledger. Evernorth's planned deployment of 473 million XRP could then provide immediate liquidity, while privacy protections aim to encourage broader adoption.
The outcome will depend on whether the proposal secures the necessary 80% backing from validators in the coming weeks.
