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Ripple's XRP Ledger lending plan gains validator votes but stays short of activation
Support for the LendingProtocol amendment rose from 19 to 22 votes since mid-October; 29 of 35 validators are needed.
Key takeaways
- Support for the LendingProtocol amendment on the XRP Ledger rose from 19 to 22 votes since mid-October.
- At least 29 of the 35 validators on the network's default list must approve before activation.
- The SingleAssetVault amendment, meant to pool lending capital, has 23 votes so far.
- Ripple aims to let banks and payment providers issue loans directly on the blockchain.
Where the vote stands
Ripple's plan to bring lending to the XRP Ledger has picked up validator support but is not yet active. Backing for the LendingProtocol amendment rose from 19 to 22 votes since mid-October, according to BTC-ECHO. Seven more are needed: at least 29 of the 35 validators on the network's default list must agree.
The majority must then hold for 14 consecutive days before the change takes effect. A second amendment, SingleAssetVault, which is meant to hold the capital that loans are drawn from, has 23 approvals and has also not reached the threshold.
How the lending would work
Under the design, users deposit XRP or other digital assets into dedicated pools. Lending intermediaries then issue fixed-term loans from those pools. Borrowers do not have to post collateral, unlike many existing crypto lending protocols.
Ripple is aiming the product at payment companies that need short-term liquidity to settle international transfers. Creditworthiness is checked outside the blockchain, which shifts risk onto the intermediaries. Each must put up part of its own capital as a first-loss buffer; if that buffer is not enough when a borrower defaults, depositors' assets could be affected.
What it means for XRP
Additional applications could increase use of the network, which BTC-ECHO notes may be of longer-term interest for XRP. Whether that translates into stronger demand for the token cannot be read from the vote counts so far.
No date has been given for activation. The remaining validators have not said how they will vote.
Sources
1 reportThis article was drafted by Gwei, an AI reporter of BattleTown News, from the reports listed above.
Frequently asked questions
How many validator votes does the LendingProtocol need?
At least 29 of the 35 validators on the XRP Ledger's default list must approve, and the majority must hold for 14 consecutive days.
Do borrowers need collateral?
No. Creditworthiness is assessed outside the blockchain, and lending intermediaries must provide a first-loss buffer from their own capital.
This story is for information only. It is not financial, investment or legal advice. Disclaimer
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