Ripple CEO Outlines XRP Ledger’s Next Phase With Institutional Lending and Yield Tools
Ripple CEO Brad Garlinghouse has outlined the next stage of XRP Ledger (XRPL) development, with plans to expand beyond cross-border payments and long-term token holdings toward institutional lending, on-chain yield generation, and infrastructure designed to put capital to work.
The strategy, discussed during a Wall Street-focused broadcast, is taking shape alongside growing institutional interest in XRP-based financial products. Ripple allocated 127 million XRP tokens to Evernorth Holdings, a fund listed on Nasdaq under the ticker XRPN. Garlinghouse said the broader objective is to develop on-chain and off-chain products that enable liquidity to generate returns.
XRP Yield Strategies Already Have a Foundation
Part of the proposed strategy builds on an existing hybrid centralized and decentralized finance (CeDeFi) ecosystem. Doppler Finance has accumulated $150 million from 14,000 depositors across vaults holding XRP and Ripple USD (RLUSD), according to the source material.
The XRP vault accounts for $125 million, equivalent to approximately 90 million XRP tokens. Doppler uses delta-neutral strategies, arbitrage, and spot-perpetual futures basis trading to generate yield. These mechanisms illustrate the type of return-generating infrastructure that could support institutional treasury strategies.
The potential institutional participants identified in the plan include Evernorth, Japanese conglomerate SBI, and large exchange wallets. Additional liquidity channels include earnXRP gateways operating on the Flare network and the XRP Ledger's native automated market maker (AMM).
XRP Ledger Lending Depends on Two Network Amendments
Moving the proposed credit market forward requires approval from XRPL validators. Two amendments, XLS-65 and XLS-66, are central to the planned infrastructure and are currently undergoing network voting.
XLS-65 is designed to introduce single-asset liquidity pools that hold either XRP or RLUSD. The approach is intended to address impermanent loss exposure for large funds participating in liquidity markets.
XLS-66 would enable fixed-term lending on the ledger. As of mid-October 2026, approximately 50% to 55% of validators supported the amendment. Activation requires support to remain above the 80% threshold for two weeks, meaning the proposal still needs substantially broader validator approval before it can launch.
Compliance Measures Target Institutional Requirements
The proposed lending framework is also designed to accommodate the compliance requirements of institutional investors. Under XLS-66, underwriting and borrower assessments would take place off-chain through licensed institutions rather than relying on anonymous decentralized finance mechanisms.
A first-loss mechanism is intended to provide an additional layer of capital protection. Know-your-customer (KYC) and anti-money-laundering (AML) checks would be supported through the ledger's native domain-verification and digital-mandate capabilities.
These arrangements would combine blockchain-based settlement and financial operations with conventional institutional processes for assessing borrowers and managing compliance risks.
XRPL Software Features Are Already Available on Mainnet
Some of the supporting infrastructure is already live on the XRP Ledger mainnet. Permission Delegation and Atomic Batch features allow funds to distribute account-access permissions without transferring private keys, supporting more controlled management of institutional accounts.
The Multi-Purpose Token (MPT) standard is also being used to tokenize real-world assets (RWA) alongside Ripple's USD stablecoin, RLUSD. These capabilities form part of the technical foundation for the planned expansion into institutional financial products.
Evernorth, Doppler, Clearpool, and Cicada have announced plans to introduce native lending shortly after the relevant functionality is activated, with the rollout targeted for the fourth quarter of 2026.
However, the lending launch remains dependent on the amendment approval process. The XLS-66 proposal must meet the network's validator-support threshold before the planned institutional credit infrastructure can become operational.
source: u.today
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
Check out other news and articles on Google News
Disclaimer:
The articles on Hokanews are here to keep you updated on the latest buzz in crypto, tech, and beyond—but they’re not financial advice. We’re sharing info, trends, and insights, not telling you to buy, sell, or invest. Always do your own homework before making any money moves.
Hokanews isn’t responsible for any losses, gains, or chaos that might happen if you act on what you read here. Investment decisions should come from your own research—and, ideally, guidance from a qualified financial advisor. Remember: crypto and tech move fast, info changes in a blink, and while we aim for accuracy, we can’t promise it’s 100% complete or up-to-date.