XRPL Lending Protocol Proposal Prompts “Never Sell” Advice for XRP Holders

The XRP community is focusing on infrastructure changes in the XRP Ledger, particularly regarding long-term utility and institutional adoption.

Key Developments

The XRPL Lending Protocol is being proposed, introducing fixed-term, fixed-rate credit at the protocol level.
This system moves lending from smart-contract layers to a standardized, protocol-native approach governed by validator consensus.
Loans will have structured terms, predictable interest, and clear authorization, aligning with real-world institutional expectations.
The protocol places each loan in a segregated Single Asset Vault, reducing risk and avoiding issues seen in other DeFi lending platforms.

Real-World Applications

The protocol allows for undercollateralized, institutionally underwritten lending, expanding viable borrowers.
Market makers can borrow XRP/RLUSD for inventory and arbitrage.
Payment Service Providers (PSPs) may borrow RLUSD for immediate merchant payouts.
Fintech lenders can access short-duration working capital.

The new lending protocol aims to align on-chain credit with traditional market financing. Voting on the proposal will occur in January 2026, with the decision left to XRP Ledger validators. As XRP integrates into institutional credit markets, holding rather than selling could be beneficial.

XRP