On February 10, SOIL officially started leveraging the XRPL Lending Protocol (XLS-66) to streamline institutional lending, creating a more efficient and transparent system for managing digital assets.
The funds from family offices, fund managers, and other large investors are placed in Single Asset Vaults (SAVs) on the XRPL, with RLUSD being the primary asset on the chain.
This allows for almost instant settlement, prevents the use of multiple systems, and maintains a predictable cost of operation for global money transfers. Traditionally, institutional fundraising was a slow and manual process.
It included many deposits, various currencies, and multiple payment channels that required manual processing. Once launched, loan management between banks, custodians, and in-house accounting was slow and prone to errors.
SOIL’s implementation of the XRPL Lending Protocol remedies all these issues by making loan management, interest calculation, and repayment schedules automatic on the ledger itself.
XRPL Lending Protocol Automates Full Loan Lifecycle
The XRPL Lending Protocol allows you to automate every aspect of a loan from beginning to end. Because the protocol uses the ledger for accounting and interest, what once required several employees is now fully automated.
Investors can monitor the health of loans, due dates, and amounts due in real-time. Single Asset Vaults aggregate funds into a single entry on the ledger, making admin tasks simpler and enabling scalability for institutional investment.
The APR target for the aggregated RLUSD is approximately 8% by SOIL, but this is not a promise and is subject to the changes to the protocol (XLS-65 & XLS-66) going live on mainnet.
SOIL Merges Blockchain Speed with Compliance
SOIL applies blockchain in a smart and efficient manner while maintaining a strict adherence to regulations. Private vaults are responsible for KYC/KYB screenings and AML/CFT procedures, ensuring that institutions remain fully compliant while they reap the benefits of transparency and speed that blockchain technology has to offer.
SOIL invests the pooled funds in money market funds and private credit strategies. This is a clear use case for the XRPL ecosystem. Validators and the XRP community can benefit from increased credit activity on-chain, yield on-chain, and liquidity provided by tokenized real-world assets.
Also Read: XRPL Adds Institutional Lending and Privacy Tools in Ripple’s 2026 Roadmap
