Vet (@Vet_X0), a validator on the XRP Ledger, recently posted about a video from Joel Mun (@9oelM), Senior Developer Relations at RippleX, calling it “the best XRP Ledger Lending protocol explainer so far.”
He added that “lending, borrowing, and collateral management is going to be a major pillar of the XRP Ledger.” The post points to one of the most significant infrastructure upgrades the network has seen in years.
What the Single Asset Vault Is
XLS-65 introduces the Single Asset Vault, a native on-chain primitive that aggregates funds from multiple depositors into one shared pool. That pool then makes liquidity available to other XRPL protocols, starting with the XLS-66 Lending Protocol. The vault can hold XRP, an issued token, or a Multi-Purpose Token.
Vet had highlighted the importance of the amendment and called it just the beginning of bigger things. The amendment still requires more than 80% validator support to activate on mainnet. As of now, XLS-65 holds around 40% consensus votes, with XLS-66 at over 37%.
✅ The best XRP Ledger Lending protocol explainer so far!
Well explained, how it works and what this brings in utility.
Lending, borrowing and collateral management is going to be a major pillar of the XRP Ledger. https://t.co/kh7A3TAmHX
— Vet (@Vet_X0) August 27, 2026
How the Vault Works
Mun walks through the mechanics clearly in his video. A depositor puts assets into the vault and receives shares in return. Those shares represent their portion of the total pool. The share value does not stay fixed. As the pool earns interest from loans, the total pool value rises while the number of shares stays the same. Each share becomes worth more.
Mun gives a concrete example: a depositor puts in 100,000 RLUSD. After the pool earns interest, her two-thirds share of 165,000 RLUSD returns 110,000 RLUSD, a gain of 10,000 RLUSD from supplying liquidity alone.
Access and the Activity Requirement
Vaults come in two configurations. A public vault allows anyone to deposit. A private vault operates behind a permissioned domain, restricting access to credentialed participants only. Mun notes this is “useful for regulated institutions,” making the design relevant to institutional players seeking compliance-compatible on-chain infrastructure.
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Mun is also clear that the vault alone generates nothing. Yield only activates when pooled assets connect to a yield-generating protocol, such as the Lending Protocol, which lends capital at interest. Future XRPL primitives will also draw from the same vault structure.
What Comes Next?
Mun closes his video by pointing to XLS-66, the Lending Protocol, as the subject of his next explainer. That specification handles loan creation, interest accrual, repayment, and default management. Together, XLS-65 and XLS-66 form a two-layer credit infrastructure designed to run natively on the XRP Ledger. Vet believes these will form a major pillar of the XRP Ledger.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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