XRP Ledger adds credit and privacy via 3 amendments for DeFi

The XRP Ledger is completing a shift toward a fully native DeFi stack, adding credit and privacy tools that let institutions and retail users operate directly from their wallets.

XRP Ledger is adding native credit and privacy tools via amendments XLS-65, XLS-66, and XLS-0096, enabling direct DeFi access for institutions and retail holders without intermediaries.

Vet, Community Lead at the XRP Ledger Foundation and dUNL validator, published a detailed breakdown of the upgrades on Aug. 25, describing the network's transition toward a complete on-chain DeFi stack built on its existing order book, automated market maker, tokenization, and compliance infrastructure.

The credit segment advances through XLS-65 and XLS-66, whose main commercial driver is Ripple's partnership with DeFi platform Clearpool and asset manager Cicada Partners. The alliance is launching institutional lending pools backed by RLUSD, Ripple's NYDFS-regulated stablecoin that has surpassed $2 billion in market capitalization with nearly $1 billion circulating on the XRP Ledger. XLS-0096 introduces "accountable privacy" through the Multi-Purpose Token standard, encrypting balances and transaction amounts from third parties while preserving transparency for issuers and regulators. The Permission Delegation mechanism allows banks and funds to delegate operations on private DEXs to traders or bots without exposing wallet private keys.

For retail XRP holders, the upgrades translate into three opportunities. XLS-65 introduces single-asset vaults that let any user deposit funds into liquidity pools and earn interest alongside institutional capital. Clearpool's credit lines, which have facilitated over $950 million in on-chain credit, inject institutional capital into the ecosystem and increase total value locked. XLS-70 digital credentials allow users to complete regulatory compliance verifications with a single click without exposing personal data.

RLUSD's $2B Milestone Anchors the Lending Push

RLUSD crossed the $2 billion market cap threshold roughly 20 months after its December 2024 launch, with nearly $1 billion circulating on the XRP Ledger and additional deployment on Ethereum and other blockchains. The GENIUS Act, which establishes a federal framework for payment stablecoins, is moving toward implementation with U.S. Treasury rules expected to take effect Jan. 18, 2027. Ripple's broader institutional strategy includes a $275 million senior notes raise and expansion of Ripple Payments to a Korean regional bank.

What Changes for XRP Holders

According to Vet, the infrastructure was built across bull and bear cycles with a single purpose: once the amendments are approved, retail users and large funds alike can access liquidity, loans, and data protection directly from their wallets, without the detours imposed by external applications. The shift positions XRP Ledger to compete more directly with other DeFi lending platforms, potentially driving increased demand for XRP and RLUSD as network activity expands.

The amendments mark a structural change for XRP Ledger, which has historically lagged Ethereum and Solana in DeFi activity. With native credit and privacy built into the protocol layer, the network could attract institutional capital that previously required bridges or third-party smart contracts, potentially expanding total value locked and on-chain volume.

This article is for informational purposes only and does not constitute investment advice.