TL;DR
- XRPL will receive version 3.4.0 next week, introducing Lending Protocol v1.1 improvements and advances in Single Asset Vaults.
- Validator support for the lending amendments remains below the 80% threshold required for activation on the network.
- Ripple, Clearpool and Cicada Partners are already building an institutional market with over $1.8 billion.
The XRPL is advancing the development of its native lending infrastructure with a new update before its original amendments have reached the activation threshold on the network.
Validator Vet confirmed that the Lending Protocol v1.1 will arrive with version 3.4.0 next week, including fixes to the first version and with ongoing work on Single Asset Vaults.
XRPL’s official amendment tracker currently lists LendingProtocolV1_1 as “in development“, with changes that include the addition of a MemoData field to VaultDelete transactions and improvements to the XLS-66 specification.
XRPL Refines its Lending Before Going to Mainnet
XRPL version 3.1.0, launched in January, introduced the code for Single Asset Vaults and the Lending Protocol. The system is designed to support fixed-term loans without collateral using pooled liquidity: credit assessment and risk management are handled off-chain.
However, incorporating code into the software does not automatically activate a feature on the ledger. Amendments require the support of at least 80% of validators to take effect, and both SingleAssetVault and LendingProtocol are still below that threshold, leaving the effective launch in the hands of a governance decision rather than the development timeline.
The interdependence between both components makes that vote especially relevant. Single Asset Vaults pool assets from multiple depositors and issue proportional shares, which can then feed into lending markets. Vaults can hold XRP, trust line tokens or Multi-Purpose Tokens, and private vaults allow restricting deposits to participants with verified credentials.
The Institutional Market Is Not Waiting
The ecosystem build-out is already underway, regardless of the status of the amendments. Ripple, Clearpool and Cicada Partners are working on an institutional market based on the XLS-65 and XLS-66 architecture. Clearpool has accumulated over $930 million in institutional loans, while Cicada has underwritten more than $860 million in credit, bringing a combined track record of approximately $1.8 billion to the planned deployment on XRPL.
The model contemplates the use of RLUSD for institutional lending operations, where Single Asset Vaults will serve as the underlying liquidity infrastructure. For XRP users, participation will depend on how lending markets are structured and when validators decide to activate the pending amendments.
