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XRP Ledger Releases Server Software Update Introducing Native Lending Amendment

The latest server release for the XRP Ledger lays the technical foundation for native lending features, including closed-ended vaults and cash-basis accounting.

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Developers behind the XRP Ledger released reference server implementation xrpld version 3.4.0 on September 17. The update delivers bug fixes, build optimizations, and introduces two new protocol amendments, headlined by LendingProtocolV1_1, which expands on-chain lending capabilities.

The lending amendment establishes support for closed-ended vaults that operate through distinct stages of subscription, investment, and redemption. These defined intervals govern when collateral can be deposited, when loans may be originated, and when depositors can retrieve assets. Furthermore, the update implements cash-basis accounting for credit positions, ensuring that interest income is recorded only when payments are received rather than when a loan is initially issued.

The features bundled in xrpld v3.4.0 are not immediately active on the network. In accordance with the XRP Ledger's governance design, amendments require majority validator voting support before their rules take effect on-chain. The XRPL Foundation is encouraging node operators to install the new version to prepare for eventual consensus activation and maintain operational continuity.

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