XRP Ledger's XLS-66 Upgrade Aims to Bring Native Lending to Blockchain

A proposed upgrade to the XRP Ledger (XRPL) could bring native lending directly to the blockchain. The XLS-66 amendment, currently under review, aims to embed a lending framework into the protocol itself. If approved, it would allow fixed-term and fixed-rate XRP loans without relying on external smart contracts or asset wrapping.

The change also introduces zero-knowledge proofs to keep lending activity private. However, activation depends on an 80% supermajority vote from the network's validators—a threshold that has not yet been met. The XLS-66 amendment represents a major shift for XRPL, which currently sees over half of its activity from payment transactions. By integrating lending natively, the protocol would eliminate the need for third-party bridges or wrapped assets. This approach targets institutional users with features like built-in custody controls and counterparty safeguards.

Evernorth, a key player in the XRP ecosystem, has already signalled its intent to use the new system. The firm holds 473 million XRP in its treasury and plans to deploy these funds into the on-chain lending market once XLS-66 goes live.

For the amendment to activate, at least 80% of validators on any given Unique Node List (UNL) must support it. With over 150 active validators worldwide, the proposal remains in the review phase. Until then, the lending framework—and Evernorth's plans—stay on hold. The success of XLS-66 hinges on validator approval, requiring broad consensus across the network. If passed, the upgrade would mark the first time XRPL supports native lending, complete with privacy protections and institutional-grade controls. Evernorth's 473 million XRP reserve stands ready for deployment, pending the outcome of the vote.