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

A new proposal called XLS-66 could bring native lending directly to the XRP Ledger (XRPL). The amendment aims to embed a lending framework into the protocol itself, removing the need for external solutions. If approved, it would allow fixed-term and fixed-rate XRP loans on-chain while prioritising privacy and institutional controls.

Evernorth, a major XRP holder, plans to launch its lending services using this framework once activated. The XLS-66 amendment introduces a built-in lending system for XRPL, eliminating reliance on smart contracts, bridges, or wrapped assets. It includes zero-knowledge proofs to keep user transactions private. The proposal also features custody and counterparty safeguards designed to attract institutional lenders.

For the amendment to pass, at least 80% of XRPL's roughly 150 active validators must vote in favour. The voting process is ongoing, with no activation possible until the supermajority threshold is met.

Evernorth has already committed 473 million XRP from its treasury to the future lending market. The company's participation depends entirely on XLS-66's approval, as the framework would enable its planned on-chain lending services. If adopted, XLS-66 would mark the first native lending system on XRPL, offering fixed-rate loans with enhanced privacy. Evernorth's 473 million XRP reserve would enter circulation through the new market. The final decision now rests with XRPL validators, who must reach an 80% consensus for the amendment to take effect.