TL;DR:
- RippleX opened voting for the LendingProtocolV1_1 technical amendment among independent validators across the XRPL network.
- The technical proposal introduces closed vaults structured around three operational phases: subscription, investment, and final settlement.
- Activating the module on mainnet requires the consecutive approval of three related amendments bundled into the xrpld codebase.
The RippleX development team enabled voting to submit the lending protocol amendment known as LendingProtocolV1_1 to validator consensus.
LendingProtocolV1_1 is open for validator voting.
It introduces closed-ended vaults and cash-basis accounting for XRPL lending, and it must activate before LendingProtocol and SingleAssetVault can proceed.
Validators, read what changes and why it matters as you evaluate the…
— RippleX (@RippleXDev) September 30, 2026
The initiative aims to embed native lending capabilities directly into the XRP Ledger architecture. The RippleX team reported this Wednesday, September 30, 2026, that this modification introduces operational rules building on previous XLS-65 and XLS-66 specifications, which defined the single-asset vault standard and fixed-term lending.
The amendment establishes an operational distinction between two deposit types: open and closed. With open vaults, users can execute continuous deposits and withdrawals at any time. Market reports indicate this format will handle pooled funds and shared custody, though the protocol prevents its use for originating new credit intermediaries. In contrast, the lending mechanism will function exclusively through closed vaults with predefined life cycles.
These setups feature three sequential stages: subscription, investment, and settlement. During the subscription window, participants deposit capital and receive proportional shares in the pool. Once that window closes, the vault transitions into the investment stage, halting the issuance of new pool units to deploy the accumulated funds into structured loans. Upon reaching the maturity date, depositors can redeem their original principal alongside earned yields.
Official documentation notes that this phased schedule is designed to curb internal speculation and protect share valuations against late-stage capital volatility.
New Accounting Standard and Technical Activation Path
LendingProtocolV1_1 shifts the recognition of loan yields across the decentralized ledger. The initial design allowed projected interest to be booked at loan origination. The new amendment shifts this mechanism to a strict cash-basis model. Under this modification, interest is recognized in contract balances only after the borrower completes the actual onchain payment.
Technical industry analysis highlights that this safeguards against inflated balances driven by uncollected future revenues, aligning reserves strictly with realized liquidity.
Credit assessments and counterparty risk analysis will occur offchain. However, core operational phases—such as issuance, repayment schedules, and default enforcement—will be recorded directly on the XRPL ledger.
Deploying this lending infrastructure on mainnet requires coordinated approval across three technical amendments.
LendingProtocolV1_1 must be ratified alongside LendingProtocol, which governs loan management logic, and SingleAssetVault, which provides the foundational vault architecture. Network metrics confirm that the underlying source code was introduced in node release xrpld 3.4.0 and subsequent maintenance release xrpld 3.4.1, rolled out on September 25, 2026.
Voting will remain open throughout upcoming XRPL consensus rounds, requiring the validator set to maintain a qualified supermajority to set the official activation date on mainnet.
