XRP Ledger Set To Power First Lending Application With XLS-65 And XLS-66 Upgrade
The XRP Ledger (XRPL) may soon host its first native lending application, as regulated yield protocol SOIL plans to utilize the proposed XLS-65 and XLS-66 amendments.
SOIL announced on X that it is “gearing up to be the first application using the XRPL Lending Protocol and SAV,” adding that “XLS-65 and 66 unlock a new generation of lending and yield products natively on XRPL.” The project expressed support for activating the amendments as soon as possible.
These developments come as the XRP community considers two proposals for on-chain lending infrastructure. XLS-66 provides a blueprint for fixed-term uncollateralized loans with pooled liquidity, while SingleAssetVault (XLS-65) aims to consolidate deposits from various participants into a common vault that can provide liquidity to lending markets. Notably, the XRP Ledger’s v3.2.0 mainnet upgrade was also recently launched.
A demo released by SOIL offered a preview of the system’s operation when the changes are in production. The video featured several Single Asset Vaults in XRPL’s Lending DevNet, where users deposited funds into different pools and received MBT tokens in return. Each single asset vault emits its own MBT token, allowing depositors to have a token representing their position in the vault.
The demo also illustrated deposits into two other vaults on the XRP Ledger. Each buy or sell transaction adds to the MBT, depicting the growth of ownership records through increasing liquidity in the pools. Amounts transferred and sequence information were presented in an explorer interface.
One use case for the proposed changes is the ability to deposit assets in pooled vaults, which can then be used for lending while maintaining full on-chain transparency of user participation.
The testing activity is still in a nascent phase on XRPL. The presenter noted that “no wallet currently supports the Lending DevNet,” so developers have to temporarily use in-house testing tools, explaining that “we’ve hardcoded seeds to the wallets and we are assigning the transactions behind the scenes.”
Upon approval, XLS-65 and XLS-66 will introduce native lending capabilities to the XRP Ledger, providing the base layer for yield-based products, liquidity pools, and credit markets directly on the network. The improvements would also enable SOIL to be the first application to use the new lending model on XRPL.