XRPL Lending Gets a Major Upgrade: What Ripple's New Protocol Means for DeFi
Ripple has clarified that the upcoming XRPL Lending Protocol v1.1 is an enhancement rather than a replacement for v1.0, urging developers to build now. Meanwhile, institutional lending protocol SOIL is preparing to become the first app to leverage the new native lending features.
The XRP Ledger is entering a new chapter in decentralized finance, with Ripple officials confirming that a fresh wave of native lending and yield-generation products is on its way to the network. As the XRPL's DeFi ecosystem accelerates its growth, both developers and institutions are being encouraged to act now rather than wait for future updates.
Ripple executive J. Ayo Akinyele stepped forward recently to address community questions surrounding the upcoming Lending Protocol v1.1. His message was clear: the new version is not a replacement for v1.0 but rather a complementary upgrade that builds on the existing foundation. Developers currently working with v1.0 have no reason to pause their projects.
"The protocol works as designed," Akinyele explained. "Version 1.1 enhances it — bringing refinements and added flexibility based on ecosystem feedback and the broader vision for where lending on the XRPL is headed." He further clarified that v1.1 will arrive as a separate amendment, meaning v1.0 will remain fully active and unsupported. This structure allows institutions and developers to move forward with deploying real lending applications directly on mainnet without any dependency on the forthcoming upgrade.
The activation of v1.1 will follow the standard amendment process used on the XRPL. Each amendment is evaluated independently by validators on their regular schedule, so there is no bottleneck requiring users to hold off. Both versions of the protocol will coexist, providing flexibility across different use cases and development timelines.
Alongside the protocol announcement, another Ripple executive confirmed that a new category of lending and yield products is officially making its way to the network. One of the most notable early movers is SOIL, a protocol recognized for delivering institutional lending services through USDC, RLUSD, and XRP. SOIL has publicly announced plans to integrate the XRPL Lending Protocol, positioning itself to become the first application to leverage these native on-chain capabilities.
To support this integration, SOIL has proposed the activation of two key technical standards: XLS-65 and XLS-66. These standards are expected to be enabled as soon as possible to ensure the lending infrastructure is properly deployed across the network. If successful, this could open the door to an entirely new tier of yield-generating products built natively on the XRP Ledger.
The broader implication of these developments is significant. With institutional-grade lending infrastructure taking shape on XRPL, the network is increasingly positioning itself as a competitive platform in the DeFi space — one that combines regulatory clarity, speed, and low transaction costs with a growing suite of financial primitives. As both versions of the Lending Protocol move forward, the XRPL community will be watching closely to see how quickly adoption takes hold among developers and financial institutions alike.