XRP News Today: XRPL Lending Protocol Sparks Institutional Demand, Curbs XRP Selling Pressure

Generated by AI AgentNyra FeldonReviewed byAInvest News Editorial Team
Tuesday, Dec 23, 2025 9:16 pm ET1min read
XRP
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Aime RobotAime Summary

- Ripple's

XRP
Ledger (XRPL) will launch a protocol-native lending system, enabling institutional-grade credit markets and fixed-rate yields for XRP/RLUSD holders.

- The XLS-66d amendment introduces risk-isolated Single Asset Vaults (SAVs), ensuring loan defaults don't cascade across the network while aligning with institutional compliance standards.

- Market analysts urge XRP holders to avoid selling as the protocol could drive institutional demand, with Ripple engineer Edward Hennis calling it a "liquidity pump" for DeFi and cross-border finance.

- Validator voting on the amendment is scheduled for late January, marking a critical step toward activating protocol-level credit infrastructure on XRPL.

Market Analyst Urges XRP Holders to Avoid Selling as Institutional Lending Protocol Looms

Ripple's

XRP
Ledger (XRPL) is set to introduce a groundbreaking lending protocol,
positioning the cryptocurrency
for a new era of institutional adoption and utility. This protocol will enable fixed-term, fixed-rate, and underwritten credit at the protocol level,
offering XRP holders the potential to earn
institutional-grade yield. Market analysts and Ripple engineers are highlighting the significance of this development,
as it marks a shift
from speculative trading to productive capital use.

The lending protocol, governed by validators and embedded via the XLS-66d amendment,

eliminates reliance on smart contracts
and introduces risk isolation through Single Asset Vaults (SAVs). Each loan will be contained in its own vault,
holding only one asset
such as XRP or RLUSD, ensuring risk is segmented and defaults do not cascade across the system. This design
aligns with institutional expectations
for credit infrastructure, emphasizing predictability and compliance.

Validator voting on the amendments is expected
in late January, signaling a key step toward activating protocol-native credit markets on XRPL.
Ripple's software engineer, Edward Hennis, described the development as a "liquidity pump" for the network, enabling sophisticated DeFi strategies and cross-border funding. The move is expected to
enhance XRP and RLUSD utility
, particularly for institutional players seeking stable yield opportunities.