Ripple has unveiled plans for a native lending protocol on the XRP Ledger (XRPL) as part of its updated roadmap. The protocol will launch with XRPL Version 3.0.0 later this year.
The XRP Ledger has reached over $1 billion in stablecoin volume in a single month. It has also secured a position among the top ten blockchain networks for real-world asset activity.
1/ Institutional DeFi is here and the XRP Ledger has solidified its position as the trusted open source settlement layer for global institutions.
The next phase of the roadmap starts now. Explore it below and read the full blog for details 🧵⬇️ https://t.co/YLQ9Po8xMQ
— RippleX (@RippleXDev) September 22, 2025
The new lending protocol will introduce pooled lending and underwritten credit at the ledger level. It will use Single-Asset Vaults and Lending Protocol specifications to manage these functions.
The system pools liquidity through vaults that issue shares to investors. These shares can be public or restricted based on requirements.
The vaults then support fixed-term loans with repayment schedules managed on-chain. While underwriting and risk management happen off-chain, institutions can add safety measures.
First-loss capital can provide extra protection for lenders. Regulated custodians can structure collateralized loans within the system.
Ripple designed the protocol to give institutions access to low-cost, compliant credit markets. The system taps into liquidity from global investors while meeting regulatory standards.
Financial institutions can source capital efficiently while following KYC and AML requirements. The XRPL’s low fees and fast settlement make this process more efficient.
The protocol pools liquidity from smaller investors into institutional-sized loans. This approach maintains compliance while providing access to global capital.
Ripple has already introduced compliance tools like Credentials, which link to decentralized identifiers. These tools help verify KYC status and accreditation levels.
The Deep Freeze tool allows issuers to prevent operations on flagged accounts. Token Escrow and Permissioned DEXs offer greater control without centralizing the system.
Privacy protection is part of Ripple’s roadmap through zero-knowledge proofs (ZKP). These will offer confidentiality while remaining auditable for regulators.
Confidential Multi-Purpose Tokens are planned for Q1 2026. These will allow private trading of assets while maintaining regulatory compliance.
The Multi-Purpose Token (MPT) standard allows representation of complex financial instruments. Bonds, funds, and structured products can all be represented on XRPL.
MPTs do not require complex smart contracts and contain multiple metadata fields. This makes them suitable for institutional use cases.
Ripple recently extended RLUSD into Aave’s Horizon RWA market. This move shows how tokenized assets are gaining adoption in regulated environments.
The roadmap includes other tools like batch transactions and permission delegation. These features keep XRPL fees low while ensuring fast settlement.
Ripple encourages validators to upgrade to version 3.0.0. Developers can test lending and tokenization features on the devnet now.
The long-term vision positions XRPL as a trusted chain for institutional finance. It will power stablecoin foreign exchange, collateralized lending, and tokenization with built-in compliance.
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