$ALCX
XRP Ledger Targets Native DeFi Lending With XLS-66
The XRP Ledger is moving closer to becoming a major player in DeFi with the proposed XLS-66 lending protocol. If approved, the upgrade would introduce native lending and borrowing directly on XRPL, allowing users to earn returns on idle assets.
Unlike many DeFi platforms, XLS-66 focuses on fixed-term loans using pooled liquidity while relying on off-chain underwriting and identity checks rather than automated on-chain collateral and liquidation systems. The ledger would mainly handle settlement, ownership records, and audit trails.
However, the feature is not live yet. To activate it, the proposal must reach 80% validator approval for two consecutive weeks. Currently, support remains low at about 17%, meaning adoption will depend on broader validator consensus.
If eventually implemented, native lending could push XRPL deeper into the DeFi ecosystem and expand its real-world financial use cases.