Ripple launches XRPL lending protocol, developers can now access and test on testnet.

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BlockBeats News, June 29, Ripple launches XRPL Lending Protocol, providing on-chain credit infrastructure for tokenized assets. The core principle of the protocol is that credit judgment remains off-chain, with only the execution steps standardized on-chain. Institutions handle underwriting and compliance reviews themselves, while the protocol standardizes the execution of liquidity pooling, loan issuance, repayment, and default processing.

The protocol consists of two parts: the Single Asset Vault, which manages a single asset in a pooled manner on-chain; and the Lending Protocol, which distributes vault liquidity as loans with clear terms. These correspond to proposals XLS-65 and XLS-66 respectively, and still require validator node approval. At the infrastructure level, the protocol supports a subordinated capital mechanism, where the pool manager bears risk exposure ahead of other liquidity providers. Developers can now access and test the protocol on the devnet testnet.

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