Ripple Unveils XRPL 3.0 with Native Lending Protocol

Ripple unveils XRPL 3.0 with native lending protocol, privacy tokens, and liquid staking to drive compliant, institutional-grade decentralized finance adoption.

Ripple has revealed plans for XRPL 3.0, an upgrade designed to expand decentralized finance for institutions. The roadmap, published Monday, introduces a native lending protocol to facilitate compliant, low-cost on-ledger credit markets. The feature will be released later this year with XRPL Version 3.0.0. Ripple will simplify credit operations by incorporating lending into the ledger and still upholding institutional standards.

XRPL 3.0 Combines Privacy, Compliance in Institutional Lending Push

Native lending protocol will enable underwritten credit and pooled lending with direct access to the ledger. Single-Asset Vaults are used to aggregate liquidity and are issued in form of vault shares. This system automates the issuance of loans, repayment, and balancing of loans and the institutions are still able to manage risks off-chain. According to Ripple, this method causes minimal friction to the operations and maintains transparency to those who are regulated.

Zero-knowledge proof (ZKP) functionality is also introduced by XRPL 3.0 and improves the privacy throughout the network. In 2026, Privacy-preserving and yet compliance standards Multi-Purpose Tokens (MPTs) are likely to be implemented to allow collateral management. ZKP enables institutions to check the compliance of KYC without disclosing personal information. Auditors do not have to display sensitive wallet data to verify activity and proof-of-reserves, which balances privacy and monitoring.

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XRPL 3.0 lending layer is aimed at institutional-grade credit markets. The participants will be able to borrow and lend under regulated circumstances that are combined with the current compliance capabilities of XRPL. Ripple believes that the feature will offer a cheap substitute to Ethereum, Solana, and Avalanche-based DeFi markets. With the development of ledger-native credit infrastructure, the company will streamline the workflows and appeal to institutional capital to the network.

RippleX Reveals New Institutional Strategy at XRPL Seoul 2025

RippleX, the institutional-oriented division of the network, is focusing on zero-knowledge implementations. The programmable controls, regulatory compliance, and increased privacy of sensitive transactions will be provided by the use of confidential MPTs. The features are designed to serve the applications where the confidentiality is paramount such as banking, treasury tasks, and corporate finance. Analysts observe that privacy and regulatory visibility are not common in public blockchains, and XRPL could have an advantage.

Liquid staking is also a part of the institutional growth of XRPL. During XRPL Seoul 2025, Midas and Interop Labs introduced mXRP, a liquid staking token on the network, with yearly returns between 6 and 8 percent and based upon the new EVM-compatible sidechain of XRPL. The function also enables the participants to get returns on XRP holdings and retain liquidity and interoperability with decentralized applications.

It is observed that XRPL 3.0 is a big move in the strategy of Ripple to expand institutionalization. On-ledger lending, ZKP privacy and staking are combined to form an all-purpose ecosystem. In case the features gain popularity, XRPL may be able to compete with the existing DeFi platforms and attract regulated organizations. The roadmap of Ripple is an indication of a new approach to decentralized finance targeting the needs of enterprises, which would be both compliant and efficient and innovative.

To conclude, XRPL 3.0, privacy tokens, and liquid staking aim to make Ripple a leader in institutional DeFi. Moreover, Ripple combines innovation with compliance to attract capital and support safe markets. As a result, it could help create a new model for blockchain finance.

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