XRP Ledger builders to test native lending before validator approval

XRPL Commons has announced early access to the XRP Ledger’s proposed native lending tools at its Oct. 24–25 New York hackathon, with more than 400 builders registered for the 36-hour event while validator voting continues.

XRPL Commons, the Paris-based nonprofit supporting XRP Ledger development, said participants in its AI & Fintech XRPL Hackathon will build lending applications using test versions of XLS-65 and XLS-66. The organization named Ripple, the XRPL Foundation, Mastercard, Amazon Web Services, Ledger and QuickNode as partners backing the event.

With the amendments still awaiting approval, the organizer said teams will work in a test environment rather than launch native lending products on the main network. Ripple has already made the proposed protocol available for developers to test.

XRP Ledger lending still depends on validator approval

Under the proposed framework, XLS-65 would introduce Single Asset Vaults, allowing several depositors to pool one asset, such as XRP or Ripple’s dollar stablecoin RLUSD. The design gives each depositor shares representing their portion of the pool, according to XRPL Commons.

XLS-66 would use those pooled assets to fund fixed-term loans. As described in the lending proposal, borrowers and designated loan managers would agree on interest, repayment schedules, and other terms, while the ledger would record and manage the resulting credit arrangements.

Rather than require borrowers to lock up assets worth more than their loans, the proposed system relies on credit assessments outside the blockchain. According to the protocol’s design, a first-loss capital buffer can absorb an initial portion of losses when a borrower defaults.

For applications using the proposed features, XRPL Commons said lending could operate directly on the ledger without a bridge to another blockchain or a separately deployed smart contract.

“Developers have an opportunity to bring proven DeFi models to the XRP Ledger—and build financial applications that have yet to move on-chain,” said Odelia Torteman, head of digital assets at XRPL Commons.

Torteman said the proposed vault and lending functions would add a credit layer, creating ways to use XRPL-based assets “without bridges or custom smart contracts.”

As crypto.news reported on Aug. 10, Ripple’s validator backed both lending amendments. Under the network’s amendment rules, however, proposals must maintain support from more than 80% of trusted validators for two consecutive weeks before activation.

XRPL documentation describes that voting process as the mechanism for introducing changes to the core protocol. The hackathon announcement sets no activation date, leaving participating teams to develop against test versions while validators make their decisions.

Lending software changes add defined vault periods

The lending proposals have also undergone changes beyond the original vault and loan framework.

In coverage published on Sep. 18, XRPL developers’ version 3.4.0 lending changes included a separate amendment called LendingProtocolV1_1. According to the release documentation cited in that report, the amendment introduces closed-ended vaults with defined periods for deposits, investment, and redemption.

Under Ripple’s technical documentation, deposits and withdrawals stop during the investment period while pooled assets can fund loans. Redemption begins after that period ends, allowing depositors to recover their share once loans mature.

The documentation also sets out cash-basis accounting, under which new vaults would recognize interest when borrowers pay it rather than count all scheduled interest when a loan begins. The additional amendment remains dependent on the underlying lending architecture and its own approval process.

Commercial developers have announced preparations alongside that work. On Sep. 11, Clearpool outlined its planned XRPL credit expansion, proposing lending products built around the native vault and lending standards.

According to Clearpool’s proposal, Ripple committed capital toward products offering yield opportunities using XRP and RLUSD. An associated arrangement with Cicada Partners would provide RLUSD-denominated working-capital loans to fintech and payment companies, with Cicada handling borrower selection, loan terms, and credit risk.

For U.S. institutions considering RLUSD-based products, Ripple says Standard Custody & Trust Company issues the stablecoin under a limited-purpose trust charter supervised by the New York State Department of Financial Services. The state regulator separately lists Standard Custody as a chartered trust company.

New York teams will compete across four tracks

Alongside Lending & Borrowing, XRPL Commons said the hackathon will offer Protocol Innovation, Agentic Finance and an open category called Why Not.

For the protocol track, the organizer is seeking C++ and systems engineers to work on amendments, client software, and developer tools. A three-day Core Dev Bootcamp will run in New York on Oct. 20–22 before the weekend competition.

The Agentic Finance track will cover infrastructure that allows AI agents to make payments and manage funds on the XRP Ledger, according to the event description. XRPL Commons said developers can use existing ledger functions, including escrow and Credentials, in their applications.

The organizer has opened participation to developers new to XRPL as well as established teams. Its event materials list more than $40,000 in prizes, including dedicated bounties from Mastercard, Ledger, QuickNode and AWS.

Mastercard’s involvement was previously announced on Aug. 26, as reported in Aug. 27 coverage of its New York hackathon sponsorship. Separately, Mastercard announced plans in June to support regulated stablecoin settlement, naming RLUSD and the XRP Ledger among the assets and networks in its expansion.

For the competition, XRPL Commons said mentors and judges will include representatives from the sponsoring companies, Ripple and the XRPL Foundation. Its list also includes t54.ai, Evernorth, Soil, XRPScan, Common Prefix, Sum, Blockvault and the European Business School.

Winning teams can enter XRPL Commons incubation

Beyond the prize competition, XRPL Commons said top teams will receive fast-track access to grants and incubation. The hackathon is scheduled ahead of Ripple’s Swell conference, which runs Oct. 27–29 at The Shed in New York.

“We’re inviting developers and innovators to New York to turn these building blocks into working products over one weekend,” said David Bchiri, president of XRPL Commons.

Bchiri said the organization would support selected projects after the event through incubation and introductions to partners and investors.

Founded in 2023, XRPL Commons says it has incubated more than 70 projects and works with over 5,000 active builders. The nonprofit named ReGolda, Blockvault and MobileWallet among its alumni.

According to the organization, its three-month Make Waves buildathon involved 171 builders and produced 56 mainnet launches. Four participating teams are entering the ninth cohort of its Aquarium incubator, alongside Megawatt, the Paris Blockchain Week hackathon winner that began incubation this month.