SOIL Brings Institutional On-Chain Lending to XRPL with XLS-66
SOIL Farm is building an institutional lending stack on the XRP Ledger (XRPL) using proposed amendments XLS-65 and XLS-66. The protocol combines Single Asset Vaults and a permissioned-domain model to aggregate institutional capital into RLUSD, enable on-ledger loan creation, automated interest accrual, real-time loan health monitoring, and instant settlement — while preserving KYC/AML through gated vaults. SOIL plans to deploy aggregated RLUSD into money market funds and private credit strategies targeting roughly 8% APR in real yield (not token emissions). The pending XLS-66 mainnet activation is central: validators adopting it would enable on-chain credit, RWA liquidity, and native yield opportunities for RLUSD and XRP holders. SOIL positions itself as a hybrid solution for family offices and fund managers seeking regulated, efficient institutional credit on XRPL and says a demo is forthcoming.
Bullish
This development is bullish for XRPL and related tokens because it targets institutional adoption — a structural driver of sustained on-chain volume and liquidity. SOIL’s design reduces operational friction (instant settlement, automated accounting) and preserves compliance via permissioned domains, making XRPL more attractive to regulated capital such as family offices and fund managers. The protocol’s promise of real yields (target ~8% APR) from money market and private credit strategies provides an on-chain use case beyond speculative token rewards, which can draw long-term demand for RLUSD and utility for XRP (as network settlement liquidity). Short-term effects may include increased attention and speculative inflows around the XLS-66 activation and SOIL demo announcements, causing price upticks. In the medium to long term, if validators adopt XLS-66 and institutions begin depositing capital, expect higher sustained transaction volume, deeper RWA liquidity, and improved market-making—factors that support higher valuations and lower volatility. Caveats: the bullish case depends on timely mainnet activation, strong validator support, robust legal/compliance execution, and actual deployment of institutional capital. Past parallels include token ecosystems that gained traction after integrating compliant RWA or institutional-focused rails (e.g., tokenized dollar pools and custody integrations), which produced sustained on-chain activity and price support once adoption scaled.