TLDR
- XRPL is considering XLS-66, a lending standard for fixed-term loans funded through pooled assets.
- The proposal would rely on XLS-65 Single Asset Vaults, where depositors receive shares representing their pool ownership.
- Loan brokers would manage lending pools, set fees, approve loans, and determine first-loss capital requirements.
- Credit checks and borrower assessment would remain off-chain rather than using automatic collateral liquidations.
- Brokers could post first-loss capital to reduce depositor losses if borrowers default.
The XRP Ledger (XRPL) is reviewing a lending standard that could allow pooled assets to fund fixed-term loans on XRPL. The draft, XLS-66, would use XLS-65 Single Asset Vaults to collect assets from depositors and issue shares that represent their stake in each pool.
A loan broker would create and manage the pool, approve loans, set fees, and define first-loss capital. The structure could support XRP, issuer-backed assets or Multi-Purpose Tokens, while access could remain public or restricted.
XRPL Vaults Would Hold Pooled Lending Assets
Under XLS-65, depositors would place one asset into a vault and receive shares based on their contribution. Those shares would show ownership, but they would not guarantee immediate access to cash once the pool funds loans.
Each pool would need withdrawal rules. Terms could explain whether requests enter a queue, whether lending limits apply, and how much liquid capital remains available while loans stay open.
XLS-66 would allow a broker and borrower to create a loan with principal, interest rate, payment schedule, maturity date and grace period. The loan record would track unpaid principal and interest on the ledger.
The system would support late-interest rules, origination fees, and early repayment charges. If a borrower misses payments beyond the grace period, the broker could mark the loan as impaired or defaulted.
Credit Checks Would Remain Off-Chain
The proposal focuses on uncollateralized lending and does not add automatic collateral sales or forced liquidations. Brokers would assess borrowers outside XRP Ledger using financial records, legal agreements, guarantees, trading history, or other credit checks.
This approach gives brokers a central role in risk control. Depositors would need information on borrower standards, concentration limits, legal terms and the broker’s lending process before allocating assets to a pool.
XLS-66 would let brokers post first-loss capital to absorb part of a default. The value of that protection would depend on the size of the reserve compared with outstanding loans.
The proposal remains a draft and depends on XLS-65 and XLS-64. Adoption would require approved standards, active brokers, borrowers, and clear pool terms. Evernorth has explored XRP-related DeFi opportunities, but no primary material reviewed identifies an Evernorth-run lending pool.
The post XRPL Eyes Fixed-Term Lending Through New XLS-66 Standard appeared first on Blockonomi.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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