Ripple advances institutional DeFi with lending and privacy tools
New compliance features, native credit markets, and zero-knowledge proofs position XRPL for institutional finance adoption
Yurchanka Siarhei/Shutterstock and Adobe modified by Blockworks
The XRP Ledger (XRPL) is accelerating its institutional finance strategy, introducing a slate of compliance and credit tools while preparing to launch a native lending protocol later this year.
Ripple confirmed the developments in a roadmap update, published Monday.
Three compliance features — Credentials, Deep Freeze, and Simulate — are now live. Credentials, tied to decentralized identifiers (DIDs), allow issuers to verify user attributes such as KYC or accreditation.
Deep Freeze enables issuers to halt transfers from sanctioned accounts, while Simulate lets developers test transactions without committing them to the ledger. Together, these tools expand XRPL’s compliance toolkit for regulated institutions.
The upcoming lending protocol, defined in the XLS-65 and XLS-66 specifications, will introduce pooled lending and underwritten credit directly at the protocol level. Institutions will be able to source low-cost, compliant loans while smaller investors gain access to yield opportunities.
Looking further ahead, the XRPL community is developing zero-knowledge proofs (ZKPs) to balance privacy and regulatory accountability. Confidential multi-purpose tokens (MPTs), expected in early 2026, will allow collateral management without exposing sensitive transaction data.
The roadmap signals Ripple’s intent to position XRPL as a leading chain for institutional finance, combining compliance, programmability, and privacy. As validator voting continues and Version 3.0 approaches, institutional adoption will hinge on the network’s ability to scale securely while meeting regulatory demands.
This is a developing story.
This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication.
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