Progress Made in XRPL Credit Protocol Approval Process

The XRP Ledger network is approaching a significant update with the Lending Protocol change for a local credit mechanism. Validator Vet announced that the change has received two new yes votes, gaining support from 23 out of a total of 35 trusted validators. Six additional votes are needed to surpass the threshold. However, reaching the required number of votes does not mean the update will be implemented immediately. First, an 80% supermajority must be achieved with the support of at least 29 validators, after which a two-week activation process will begin. The change, referred to as XLS 66, aims to add a local credit function to the XRP Ledger. This system relies on pooling funds through structures called Single Asset Vaults. There are three main parties involved: depositors, credit intermediaries, and borrowers. While depositors invest their assets into the pool, credit intermediaries will evaluate borrowers and establish loan agreements. Additionally, an extra change named LendingProtocolV1_1 has also reached 21 yes votes and includes regulations such as closed-end pools and updated interest accounting.

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