XRP Ledger's XLS-66 Proposal Could Revolutionize On-Chain Lending

A new proposal could bring native lending to the XRP Ledger (XRPL) without relying on external smart contracts. The XLS-66 amendment aims to introduce fixed-term, fixed-rate XRP loans directly on-chain. If approved, it would also enhance privacy through zero-knowledge proofs during transactions.

Since December, the total stablecoin supply on XRPL has already exceeded $570 million, highlighting growing activity on the network. The XLS-66 amendment would embed a lending framework straight into the XRPL protocol. This means users could borrow and lend XRP without needing third-party bridges or wrapped assets. The system would support fixed-term loans with set interest rates, simplifying the process.

Privacy is another key feature. Zero-knowledge proofs would keep lending details confidential while still verifying transactions. However, the proposal faces a hurdle before activation: it requires an 80% supermajority vote from XRPL validators. Currently, at least 28 of them must back the amendment to meet this threshold.

Evernorth, a major player in the XRPL ecosystem, has already signalled its support. The firm holds 473 million XRP in its treasury and intends to deploy these funds into the new lending market once XLS-66 goes live. This move could inject significant liquidity into the system.

The amendment arrives as XRPL sees increasing use. Payments now account for over 50% of all activity on the network, suggesting strong demand for financial services built directly into the ledger. If approved, XLS-66 would mark a shift in how XRP lending operates, removing dependencies on external platforms. The amendment's success depends on validator support, with 28 votes still needed to reach the required 80% threshold. Evernorth's planned deployment of 473 million XRP could further boost adoption once the framework is active.