Ripple Proposes XRPL Standard to Let Institutions Borrow Against Tokenized Assets
A new proposed standard for the XRP Ledger would enable institutions to use tokenized assets as collateral for loans, with loan terms enforced directly on-chain. The proposal still requires validator approval before it can go live on the network.
Ripple has put forward a proposed standard for the XRP Ledger designed to allow institutional participants to borrow against tokenized assets held on the blockchain. Under the framework, the ledger itself would enforce the terms of a loan, automating key contractual obligations that would otherwise require manual oversight.
Critically, the proposal preserves a role for human credit teams, who would retain responsibility for the underwriting process. This hybrid model is intended to make the system palatable to regulated financial institutions that cannot fully delegate credit decisions to automated systems.
The proposal is not yet active. It must first clear a validator approval process, meaning the XRPL validator community will have a say in whether the standard is adopted. The timeline for that review has not been publicly specified.
If approved, the standard could meaningfully expand the utility of tokenized real-world assets on the XRP Ledger, positioning the network as infrastructure for institutional lending activity rather than purely for payments or settlement.
Key facts
- •Ripple has proposed a new XRPL standard for institutional borrowing against tokenized assets
- •On-chain enforcement of loan terms is a core feature of the proposal
- •Human credit teams would retain underwriting responsibility
- •The standard requires validator approval before activation
- •No activation timeline has been publicly confirmed