The XRP Ledger (XRPL) is edging closer to its most ambitious DeFi upgrade to date. According to validator Vet (@Vet_X0) and reports from U.Today and The Crypto Basic, the Lending Protocol amendment—identified as XLS‑66—has garnered 21 affirmative votes from the 35 trusted validators that govern protocol changes. This 60% support places the proposal eight votes short of the 29‑vote supermajority required to initiate the mandatory two‑week activation period.

How the Lending Protocol Works

XLS‑66 is designed to introduce native, fixed‑term, uncollateralized lending directly on the XRPL. Funds would be pooled in Single Asset Vaults, a component defined in XLS‑65, and then allocated to borrowers through a broker‑mediated process. Depositors contribute crypto or supported assets to the vaults, loan brokers evaluate borrower creditworthiness off‑chain and set loan terms, and borrowers receive loans that are repaid according to predefined schedules. The protocol also includes a first‑loss capital layer to absorb initial losses before senior liquidity providers are affected, offering added protection for depositors.

Validator Progress and Activation Mechanics

The amendment’s current tally of 21 Yes votes follows a recent increase from 19, as noted by The Crypto Basic. To move forward, the proposal must secure eight additional votes to reach the 29‑vote threshold. Once that supermajority is achieved, the network will begin a 14‑day activation window during which at least 80% of validators must continuously maintain support. If support dips below that level, the timer resets, as demonstrated during the recent activation of the Batch amendment.

Potential Impact and Stakeholder Interest

If XLS‑66 and its prerequisite Single Asset Vaults are approved, the XRPL would gain a native infrastructure for credit markets, expanding its utility beyond payments and settlement. Ripple has indicated that XRP itself could be lent and borrowed through the new system, offering institutional players a way to generate yield on idle holdings. Earlier reports mentioned that firms such as Evernorth, SOIL, and VS1.Finance are exploring integrations, and the protocol has undergone extensive security audits and formal verification.

What to Watch Next

The next critical milestone is the acquisition of eight additional validator Yes votes. Observers will monitor validator voting patterns over the coming days, as well as any shifts in support that could affect the two‑week activation countdown. Parallel attention will focus on the progress of XLS‑65, the Single Asset Vault amendment, which currently holds 23 votes and is essential for the lending stack to function. Successful activation of both amendments would mark a significant expansion of XRPL’s DeFi capabilities, potentially attracting new institutional liquidity and broadening the ecosystem’s use cases.