Ripple-backed XRP Ledger validators are moving to vote on two new amendments, XLS-65 and XLS-66, leading to XRP news headlines. If approved, these proposals would add a native lending model and asset vault model.
About Latest XRP Ledger Lending Protocol Upgrade
The suggested ‘XLS-66 Lending Protocol’ aims to facilitate “on-chain, fixed-term, uncollateralized loans using pooled funds from a Single Asset Vault.” The overview of the amendment notes that the model is based on off-chain underwriting and risk management to determine the creditworthiness of the borrowers with configurability of on-chain peer-to-peer loans. Currently, the proposal is on the list of “Open for Voting” for XRPL upgrades.
Meanwhile, ‘XLS-65 SingleAssetVault’ looks to create a framework to unify the money of more than one depositor, according to XRP news today. This feature will be effective in collaboration with the lending protocol.
For further context, it will allow the efficient deployment of pooled liquidity to lending operations. Similar to XLS-66, this amendment is also “Open to Voting.” The upgrades comes at a critical juncture as XRP Ledger transactions hit a 2-year high recently.
VS1 Finance is one the responsible for these upgrades. On X, th team wrote, “VS1 is building on XRPL. Explore how we are applying Single Asset Vault and Lending Protocol to enable bond tokenization, going beyond simple credit use-cases.”
XRP News: Validators Test New Lending Protocol
Ecosystem participants and developers have come up with early testing feedback. On X, Fig, co-founder of Squid Router said, “I spent the weekend testing XLS-65 and XLS-66 in devnet and found no issues in protocol implementation, design or security.” He added, “Squid’s UNL validator will be voting yes to both proposals.”
However, Fig made it clear that the tests were not an official audit, but a series of simulated scenarios. “The tests are a series of scenarios where people are depositing to vaults, creating loans, withdrawing funds and repaying loans in various orders, timings and sizes,” he wrote.
In addition, he stressed that the aim was to make sure “the maths is correct and can’t be gamed” as “DeFi protocols often fail at the edges.” In the XRP news update, the validator also spotlighted one of the fundamental design solutions of the amendments.
“A strong characteristic of the protocol is that it leaves the really difficult stuff (like credit assessment) offchain,” he said. Fig termed it a modern way to design a DeFi protocol.
XRPL validator “Vet” supported Fig’s feedback. He called it a “great thread on the XRP lending protocol amendment currently up for voting.” He highlighted how the amendment relies on off-chain elements to implement the complex business logic that otherwise smart contracts typically take over.
Nonetheless, the implementation of these proposals depends on consensus vote. Both XLS-65 and XLS-66 require majority votes to pass and be executed on the network.
Visit: Best DeFi Lending Platforms in 2026
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