Key stakeholders in the Ripple-backed XRP Ledger (XRPL) ecosystem are pushing for the chain to be optimized for institutional decentralized finance (DeFi). Evernorth, a top XRP treasury firm, announced it will make the upcoming ‘XRP Lending Protocol’ its core digital asset strategy, aiming to unlock a multi-billion-dollar annual yield opportunity. This move comes as the XRPL’s DeFi total value locked has declined to around $60 million, lagging far behind rivals like Solana and BNB Chain.
Major players within the XRP Ledger ecosystem are advocating for technical upgrades to attract institutional DeFi capital. They specifically point to strategies similar to Ethereum’s yield vaults as a model for growth.
Evernorth, a leading XRP treasury firm, recently stated the upcoming ‘XRP Lending Protocol’ will be central to its digital asset approach. The firm believes this protocol could cause “a fundamental shift in how institutional liquidity moves onchain.”
Asheesh Birla, CEO at Evernorth, noted the initiative aims to drive XRP DeFi activity significantly. He stated the goal is to “help unlock what could be a multi-billion-dollar annual yield opportunity for the XRP community.”
The proposed upgrade, known as XLS-66d, is currently on a testnet and would enable single-asset vaults for fixed-rate loans. Evernorth considers this lending protocol the missing piece for XRP’s DeFi ecosystem.
Despite institutional partnerships, the XRPL’s DeFi ecosystem has struggled to gain traction compared to its peers. Its total value locked (TVL) has recently dropped to approximately $60 million.
This figure is vastly overshadowed by the $9.3 billion on Solana and $6.5 billion on the BNB Chain. It remains unclear if the new lending protocol can help close this substantial DeFi gap.
On-chain data presents a mixed picture regarding large XRP holders. Analytics firm Santiment reported 42 wallets holding over 1 million XRP tokens have resumed accumulation for the first time since September.
However, the 30-day XRPL Whale Flow metric indicates large holders remain net sellers overall. The XRP price was consolidating near $1.7 as broader market direction was awaited.
