Validator Vote for Native Lending and MiCA License Give XRP Network a Boost as Price Tests Key Support

XRP Ledger upgrade XLS-65/66 seeks validator approval for institutional lending; price drops 70% from highs but on-chain activity and RLUSD adoption rise.

A protocol upgrade that could bring institutional-grade lending directly onto the XRP Ledger is being put to a validator vote, even as the token’s market price languishes near the psychologically critical $1.00 mark. Two proposed amendments — XLS-65 and XLS-66 — would establish a standardized lending infrastructure on the blockchain, designed specifically for regulated financial institutions.

The framework keeps credit assessment and compliance off-chain, where licensed lenders handle due diligence. The ledger itself executes and settles the loans: disbursement, interest calculation and repayment. The target assets are tokenised instruments such as US Treasury securities, money-market funds and stablecoins. Currently, around 20% of the network’s 35 active validators have approved the changes. Activation requires a sustained 80% threshold over a 14-day period.

Regulatory momentum in Europe runs parallel to these technical developments. The European Union’s Markets in Crypto-Assets (MiCA) regulation became fully enforceable on 1 July 2025, forcing unlicensed crypto providers to exit the bloc. Ripple secured a preliminary crypto-services licence from Luxembourg’s financial regulator shortly before the deadline, giving it the green light to operate across all 30 countries of the European Economic Area. Meanwhile, Binance faced restrictions in several EU member states after failing to obtain a MiCA licence in time.

Ripple’s European foothold directly supports adoption of its stablecoin RLUSD, which has seen its share of total trading volume on the XRP Ledger climb from less than 1% at the end of 2024 to 12%. Every RLUSD transaction still requires XRP for network fees, reinforcing the native token’s role as the base asset. The LMAX Group has also integrated RLUSD as collateral for derivatives trading, and the RLUSD/XRP trading pair has clocked $900 million in volume over the past six months.

XRP’s price, however, remains under heavy pressure. At roughly $1.04, the token has shed 70% from its July 2025 52-week high of $3.65 and is down nearly 45% year-to-date. The relative strength index sits at 32, nearing oversold territory. Large holders unloaded around 30 million XRP in the past week, adding to the selling pressure. The $1.00 support level has become the last line of defence before fresh yearly lows come into play.

On-chain activity paints a contrasting picture. Daily active addresses on the XRP Ledger have rebounded to over 43,000, a 53% increase from the mid-June trough. Nearly 5,000 new wallets were created in a single day recently, signalling sustained retail interest. XRP-focused exchange-traded products recorded their eighth consecutive week of inflows, with assets under management approaching $1 billion. On 29 June alone, $15 million flowed into XRP funds — while Bitcoin and Ethereum products saw notable outflows on the same day.

Ripple’s monthly escrow release on 1 July unlocked another 1 billion XRP, as per schedule. Roughly 38 billion tokens remain locked in these reserve contracts. Historically, a large portion of each monthly tranche is re-deposited into new escrow agreements, limiting the actual supply that reaches the market. Whether this month’s release will follow that pattern is not yet clear.

The convergence of a validator vote on native lending, a MiCA-driven European advantage, surging network activity and a deeply depressed price creates an unusually mixed outlook for XRP. For now, all eyes are on the validators and the dollar level below.