Native lending on the XRP Ledger is moving through validator voting as XRP struggles to hold its latest price gains. The proposed framework would introduce pooled lending and fixed-term loans, while the token’s September 23 retreat has brought the $1.60 resistance level back into focus.
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Two amendments, XLS-65 and XLS-66, form the basis of the proposed lending system. In an X post, XRPL Commons describes the framework as a way to bring lending directly onto the network without separate smart contracts. Both amendments still require validator approval.
XRP Ledger Lending Awaits Validator Approval
The framework for the XRP Ledger lending would enable users to deposit assets into single-asset vaults. The vault would contain one asset, which could be any supported one, such as XRP, RLUSD, or another one. Users would receive shares reflecting their participation in the pool.
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XLS-66 would require loan brokers to make a fixed-term credit by means of these assets. The network would track loans, payments, and defaults. However, the lending companies would continue to take responsibility for the verification and credit decision-making.
There is also an option for the first-loss capital that would enable the brokers to pay for part of the borrower’s default. This would not protect depositors from losses, though.
In addition to that, there is the LendingProtocolV1_1 amendment that would establish specific periods for deposits, lending, and withdrawals, as well as recognition of interest income after payments are made. Amendments do not come into force after being added to the server software.
XRP Ledger needs more than 80% approval by trusted validators for two consecutive weeks before an amendment comes into force. Amendments XLS-65 and XLS-66 have not been approved yet. Thus, there is no confirmed mainnet launch date for native lending.
Would Native Lending Increase XRP Demand?
The lending protocol suggested will add yet another financial service to the XRP ledger, although the impact on the XRP demand from the project will depend on what assets the lenders and borrowers choose.
XRP-backed vaults will offer loans using XRP. Vaults backed by RLUSD or any other issued token will use this asset instead. In any case, XRP will keep playing its current role in transaction fees and account balances.
The point is relevant in connection with institutional lending products. As noted before, one of the suggested products, RLUSD working capital, is meant to be used by fintech and payment companies with the stablecoin. The development of the product does not mean that the participants will have to buy some amount of XRP.
At the same time, there is yet another amendment that is going to get activated soon. The BatchV1_1 amendment should be activated on September 29, depending on the support from the validators. The amendment will enable batch settlements to be done all together or fail all together.
XRP Price Faces Another Test Near $1.60
XRP exhibited volatility once again on September 23 following its temporary rise past the $1.65 level. The crypto opened at $1.57 and rose to $1.6581 before dropping to $1.5070. It later traded at $1.51 based on the session data.
However, the level $1.60 continues to serve as immediate resistance. Any rise above it will see the session high at $1.66 tested. Level $1.70 from a previous session serves as the other technical reference.
The 20-day simple moving average was seen near $1.40. Other moving averages converged near $1.28-$1.29. Falling below $1.40 will see the lower moving averages get some attention.
The 20-day Chaikin Money Flow came in at −0.09. Negative readings suggested weak buying despite the temporary rise. The intraday drop of XRP left any confirmation of a sustained break above $1.60 unconfirmed.
At this point, the XRP Ledger lending vote stands as a development independent of the price action. Any approval will see it become available, with further deposits and loans indicating its adoption. The first market test for the token is still its rise past $1.60.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
