XRP Ledger XLS-65 Amendment Introduces Native Single Asset Vaults for DeFi

• XLS-65 enables integration of single-asset vaults on the XRP Ledger, allowing users to pool XRP, IOU, or MPT and obtain proportional shares of MPT.
• XRPL Commons backed the amendment after 257 Devnet tests, which covered exchange logic, access controls, and asset safeguards.

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The XRP Ledger has launched a new DeFi feature through the XLS-65 amendment. The proposal introduces new native single-asset vaults that let multiple users pool a single asset into a shared on-chain structure. The model works at the protocol level, so it does not depend on smart contracts or external bridges.

Under XLS-65, a vault can only hold one asset type. That asset can be XRP, an IOU, or a Multi-Purpose Token (MPT). When users deposit funds, the ledger assigns them proportional shares, which are issued as MPT tokens and represent a user’s ownership in the vault. When a holder returns the shares, they can withdraw the matching portion of the underlying asset.

This structure gives the XRP Ledger a native system for pooled asset management and creates the foundation for DeFi products that require shared liquidity. That includes lending systems, yield tools, and treasury management services. Because the feature sits inside the ledger, it inherits the speed and low-cost model already associated with XRPL.

The amendment also gives vault creators control over participation rules. A vault can remain open to all users or restrict access through the Permissioned Domains standard. 

Last month, CNF covered the launch of XLS-85 on the XRPL Mainnet, which extended native escrow support beyond XRP to Trustline IOUs and Multi-Purpose Tokens.

XRP Ledger Vault Rules, Security and Withdrawals

XRPL Commons voted in favor of XLS-65 after completing a full test process on Devnet. The review included 257 test cases across 10 categories. The testing covered every transaction type linked to the amendment. It also covered edge cases and hostile scenarios designed to expose weak points.

The test results showed full alignment between the specification and the Devnet implementation. XRPL Commons also verified owner-only functions, credential-based access rules, immutable field controls, reserve handling, and transfer fee bypass provisions.

The proposal also includes built-in safeguards for asset handling. Frozen assets cannot enter a vault, and withdrawals remain limited while those assets are frozen. Issuers can still receive frozen funds back. Vaults cannot be deleted until all assets and shares are withdrawn.

XLS-65 is also built to work with prior upgrades to the XRP Ledger. It connects to XLS-66 through a LossUnrealized field that allows paper losses to be reflected during withdrawals.

This month, CNF also reported on a new XRPL sidechain proposal that would bring American-style options and up to 200x leverage to the XRP Ledger. 

At press time, XRP price traded at $1.39, down 2.72% in 24 hours, while trading volume stood at $2.24 billion.

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