Ripple wants institutions to borrow against tokenized assets on XRPL
A proposed XRPL standard would let institutions borrow against tokenized assets, with the blockchain enforcing loan terms while the underwriting stays with human credit teams. It still needs validator approval to go live.
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Summary
- Ripple has proposed an XRPL Lending Protocol that would let institutions borrow against on-chain assets while keeping credit decisions off the blockchain.
- The system would pool single assets in “Single Asset Vaults” and automate loan mechanics at the base layer of the XRP Ledger, with features currently live only on a test network and pending validator approval.
- Aimed at institutional use and competing with protocols like Aave and Compound, Ripple argues its fixed, network-level rules offer more predictable risk than crypto-native governance models.
