XRPL Lending Plan Needs Validator Approval Before Mainnet Use

The XRP Ledger’s proposed lending framework would let institutions fund fixed-term, uncollateralized loans from pooled assets, but validators must approve the amendment before the protocol can operate on mainnet. The design combines a Single Asset Vault, which pools deposits of one asset, with a Lending Protocol for originating loans. Institutions would handle credit underwriting and risk decisions off-chain. On XRPL, the protocol would standardize and enforce execution of agreed loan terms, along with servicing and repayment rules. One example involves a payment provider that holds Ripple USD (RLUSD) reserves while waiting for a cross-border settlement. The provider could borrow short-term working capital while the settlement is pending. The V1.1 design uses closed-ended vaults with subscription, investment and redemption phases. Its cash-basis accounting recognizes interest income when payments are made.

BeCrypto News shows a short excerpt and links to the publisher. The full report belongs to TokenPost.