Blockchain infrastructure company Ripple is expanding the XRP Ledger into institutional finance with a native lending protocol, positioning it as a broader financial infrastructure layer rather than just a payments network.
Ripple Pushes XRPL into DeFi with Lending Protocol
29 June 2026 - 22:40 CEST
The lending protocol marks Ripple's latest push into decentralized finance (DeFi), extending XRPL beyond payments and tokenization into institutional onchain lending.
Under the framework, financial institutions can originate, manage and settle loans on XRPL, with Ripple positioning the protocol as an extension of its payments infrastructure for regulated market participants.
Credit judgement
A key principle in the new product was a "deliberate choice to keep credit judgement off-chain, and standardize execution onchain," Ripple said in a 29 Jun statement.
The approach is already common among institutional DeFi lenders, where credit underwriting, borrower screening and legal documentation are typically handled off-chain, while loan issuance, settlement and collateral management are executed on blockchain networks. Firms including Maple Finance have adopted similar hybrid models to meet regulatory and compliance requirements.
Onchain credit
The XRPL Lending Protocol has two parts: a Single Asset Vault, which pools and manages one type of asset onchain, and a Lending Protocol, which turns that pooled liquidity into loans with set terms, servicing and repayment rules.
"Together, they provide a foundation for onchain credit. The vault is where liquidity is organized, and the lending protocol is how that liquidity is put to work," Ripple said, adding that this separation mimics current realities.
Other lending players
Ripple is entering one of decentralized finance's largest sectors. Lending protocols collectively hold about $31bn in total value locked (TVL), according to DefiLlama, with platforms such as Aave, Spark, Morpho, Maple and Ledn among the players. But many of the existing models don't align with how institutions manage credit risk, Ripple said.
"The challenge is no longer whether assets can exist onchain. It is whether the infrastructure around them can make those assets productive," Ripple said.
The crypto firm has projected that it will reach a $1bn revenue run rate by the end of 2026, excluding XRP held on the balance sheet.
