Ripple clears XRP Ledger lending re-audit with no critical flaws

Web3 security firm Halborn has completed a re-audit of Ripple’s XRP Ledger Lending Protocol. 

The review focused on code changes made after an earlier audit and tested whether the updated design matched the XLS-0066d lending specification.

Halborn’s report said the engagement ran from Dec. 16, 2025, to Jan. 12, 2026. The firm reviewed transaction checks, state consistency, accounting rules, parameter limits and access controls across the protocol.

No critical or high-risk flaws found

The re-audit found five issues in total. Halborn listed zero critical issues, zero high-risk issues, one medium issue, two low-risk issues and two informational findings.

The report said 100% of reported findings were addressed. Some were solved by Ripple’s engineering team, while others were accepted or acknowledged after review.

One medium issue involved a vault assets maximum bypass through loan interest. Halborn marked that finding as solved. A low-risk issue involved a missing freeze check in LoanBrokerSet, which Ripple also fixed.

The report also listed a degraded state design flaw, a grace period edge case and a cover rate validation issue. Ripple accepted or acknowledged those findings based on the report’s status table.

Lending protocol targets XRPL DeFi

The XRP Ledger Lending Protocol is designed to support on-chain, fixed-term, uncollateralized loans using pooled funds from a Single Asset Vault. The system relies on off-chain underwriting to assess borrowers rather than automated collateral liquidation.

That model differs from many DeFi lending markets. Instead of using overcollateralized loans, the protocol lets loan brokers create lending terms, manage vaults and handle borrower relationships under defined ledger rules.

As previously reported by crypto.news, XRPL’s XLS-65 and XLS-66 amendments would bring native vaults and fixed-rate lending directly to the ledger. The design favors underwritten credit, fixed terms and permissioned access over standard open DeFi lending.

The same report noted that XRP and RLUSD could gain more utility if vault deposits, borrower demand and locked supply grow after activation. It also said adoption, borrower defaults and underwriting quality remain key areas to watch.

XRPL utility push continues

Ripple has continued to expand XRP Ledger use cases beyond payments. In a recent update, crypto.news covered Ripple’s XRPL AI Starter Kit, which supports agent-driven payments using XRP and RLUSD through the x402 standard.

Previously, crypto.news explored a tokenized Treasury redemption test involving Ripple, JPMorgan, Mastercard and Ondo Finance. That test settled on the XRP Ledger in about five seconds and used RLUSD as the settlement asset.

The lending re-audit adds another technical step to that wider roadmap. It does not mean the protocol has reached full market adoption. It means one more security review has been completed and the reported issues have been handled.

For Ripple, the next test will be whether developers, vault operators and borrowers use the lending system after activation. For XRP holders, the main question remains whether new ledger activity creates lasting demand through fees, reserves, routing and broader network use.