XRP Ledger upgrade approved by 30 validators, lending protocol lags behind

Technical update targets token permissions and infrastructure bugs

The fixCleanup3_4_0 amendment prioritizes technical improvements rather than introducing large new features. Its main focus is on resolving issues affecting token permissions, automated market makers, escrow mechanisms, and the infrastructure supporting future lending systems. Unlike XRPL’s recent batch upgrades, this change aims to correct flaws and safeguard the proper functioning of existing and pending features.

One of the key issues addressed involves the PaymentBurn permission that was recently rolled out as part of XRPL’s permission delegation model. Specifically, an unintended flaw allowed accounts with PaymentBurn privileges to create new trust-line or multi-purpose tokens under certain conditions. The XRPL team has cautioned against delegating PaymentBurn permission until the new amendment takes effect, as the upgrade will close this loophole by preventing certain payments from crossing a zero balance when that permission is exercised.

Official XRPL documentation advises, “Until the fixCleanup3_4_0 amendment is enabled, you should avoid delegating the PaymentBurn permission to any account.”

Alongside this revision, the update corrects issues relating to automated market maker clawbacks, token authorization processes, management of escrow reserves, handling of transaction signatures, and calculation methods involving Single Asset Vaults.

Some of these fixes address features not yet available on the public network, underscoring XRPL’s practice of releasing code ahead of actual network approval. Activation of such features still depends on further validator support.

Mini dictionary: Trusted validators, a select group of independent network participants responsible for voting on software upgrades and amendments to the XRP Ledger protocol. Their approval is essential for enabling or activating new features.

Lending protocol amendments fail to reach consensus

In contrast to the progress of the fixCleanup3_4_0 amendment, XRPL’s proposed native lending protocol is yet to gather enough validator support for activation. As of October 18, only 19 validators backed both the LendingProtocol and LendingProtocolV1_1 amendments, and SingleAssetVault received support from 21 validators—well short of the required 29 approvals.

If implemented, the lending framework would introduce fixed-term loans supported by pooled assets, with credit checks and risk assessments handled outside the blockchain infrastructure. Single Asset Vaults are designed to help users pool their funds, whereas LendingProtocol provides the core tools for creating and managing loans. The V1_1 version would add new vault types and changes in the way interest is accounted for.

Recently published validator analyses, including one from Coinpaper, indicate that the proposed lending amendments have consistently trailed the approval threshold, delaying any potential launch date for these features.

This outcome highlights the XRPL amendment process, where technical readiness and actual network activation are distinct steps. Developers can include new functionality in the public codebase, but operational status depends on achieving broad validator consensus over a two-week period. If support falls to 80% or below, the activation timer resets.

Developers may integrate new features in code releases, but trusted validators must approve amendments before activation on the XRPL mainnet.

Growing toolkit for developers despite slow lending progress

While the proposed lending system faces delays, recent XRPL reforms—including expanded account permissions and transaction batching—have continued to broaden the capabilities available to developers and fintech applications on the ledger. These changes are part of XRPL’s ongoing effort to support more sophisticated financial use cases beyond simple payments.