- Ripple’s proposed lending system has received growing support from XRP Ledger validators, with three key changes moving closer to approval.
- The system needs support from 29 out of 35 validators for two consecutive weeks before it can become active.
- The lending model will allow borrowers to take loans without providing collateral, but depositors will depend on loan brokers to manage the risks.
Lending Proposal Gets More Support
The lending solution Ripple wants to bring to banks and payment companies on the XRP Ledger is gaining more support from validators on the network. However, it still needs seven more votes to get enough of an approval threshold.
The XRP Ledger operates using a voting system to allow changes to happen. Once an amendment gets 29/35 votes from the default validator list it will activate.
As of the latest numbers, the Lending Protocol amendment and update (LendingProtocolV1_1) have got 22 votes each. The Single Asset Vault change is also very important and has 23 votes. This will allow the creation of pools where lenders can put money.
Compared to October 19, lending has increased from 19 votes and the vault system from 21. However, they still do not have enough votes.
How The Lending System Will Work
The system will allow lenders to put XRP or any other token into a vault. This will be lent out by a loan broker to borrowers. An important feature is there will be no collateral needed. Many crypto lending services require assets to be put down as collateral.
JUST IN: Ripple’s $XRP Ledger moves closer to institutional lending launch, paving the way for banks to borrow, lend and generate yield on digital assets – a major step toward transforming XRPL into a full-scale financial infrastructure network. https://t.co/nPtVt8D3Q7
— Whale Insider (@WhaleInsider) November 12, 2026
This does pose some risk to lenders. As explained in the XRP Ledger documentation, the system will rely on credit checks and risk management off-chain. Simply put, the loan broker will have to do due diligence on borrowers.
There is some protection for depositors as the first loss capital will come from the brokers. However, lenders will be largely relying on the brokers to manage credit risk. Ripple have mentioned this could be a solution to help payment companies with short term funding.
Other Amendments Have Lost Support
Not all amendments have gained more support. The Confidential Transfer amendment which hides token balances fell from 22 votes to 21. The Dynamic MPT proposal which allows token issuers to make changes to certain aspects of their token after launch fell from 18 to 16.
Developers are looking to improve the lending system further. A new proposal was made on November 4 to add another amendment (LendingProtocolV1_2). This will allow related loan transactions and escrows to fail if another loan from the same broker is processed. A code fix was deployed on November 4 at ledger 108,112,129 to fix some issues with the lending system.
The main lending proposal and Single Asset Vault amendment still require more votes from the validators. Even once they have 29 votes they need to stay above that for two weeks. Overall, the project is progressing well and will be dependent on the voting system on the XRP Ledger to launch.
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