The XRP Ledger is moving closer to a major network upgrade designed to address existing code issues and strengthen overall reliability. The fixCleanup3_4_0 amendment has secured 29 votes from 35 trusted validators, with activation expected on October 23, provided the required support continues.

At the same time, proposals to introduce lending functionality and new digital asset management options are progressing through separate governance processes. These initiatives have received fewer votes, meaning they are not yet at the same approval stage as the cleanup amendment. If adopted, they could expand XRPL’s decentralized finance ecosystem by allowing users to lend assets and access additional financial services on the network.

The fixCleanup3_4_0 amendment has a projected activation time of 09:34 UTC on October 23. Its tracker recorded 29 supporting votes on October 9, and the number had not changed by October 19.

The package contains several technical changes affecting XRPL’s developing DeFi infrastructure. These include precision and rounding improvements for vault deposits, withdrawals, and clawbacks, alongside refinements to freezing, authorization, credential, and destination handling for Single Asset Vaults and the Lending Protocol.

Under XRPL governance rules, an amendment must maintain more than 80% support during a 14-day voting period before it can activate. Validator votes are recorded at flag ledgers, which occur approximately every 16.5 minutes. Activation begins at the first qualifying flag ledger after the voting period ends, rather than precisely when the period expires. The ledger’s recorded result takes precedence over the tracker’s displayed tally.

The planned October 23 activation remains conditional on continued validator backing. If successful, the upgrade will introduce the cleanup fixes but will not automatically launch the proposed lending market. The xrpld 3.4.0 release describes LendingProtocolV1_1 as an extension that adds closed-ended vaults and cash-basis accounting.

The proposed Lending Protocol would allow depositors to fund fixed-term, uncollateralized loans through a Single Vault operated by brokers. Borrowers would repay according to established terms, while credit assessments would take place off-chain. The current design does not include automated on-chain collateral management or liquidation processes.

Some brokers may provide first-loss capital to absorb default losses before depositors are affected. However, this mechanism cannot remove the underlying credit risk. In one documented example, a default involving 1,090 tokens results in a return of 10.9 tokens, leaving the vault to absorb a loss of 1,079.1 tokens.

If borrowers miss scheduled payments, a grace period applies before the broker can declare a loan in default. This highlights the difference between technical preparation and formal approval: the cleanup amendment improves the code, while validator governance determines whether Single Asset Vaults and the lending amendments can become operational.

Meanwhile, developments involving RLUSD payments and settlement are moving forward independently of the lending proposals. Ripple’s API partnership with Cross River demonstrates progress in this separate area.

The next step for fixCleanup3_4_0 is the first qualifying flag ledger after its 14-day voting window, assuming support remains above 80%. Both the Lending Protocol and LendingProtocolV1_1 must independently obtain 29 votes and maintain the required support before their respective activation countdowns can begin. Single Asset Vault requires at least eight more votes than its October 19 tally.

Validator decisions therefore remain central to the potential expansion of XRPL’s lending capabilities. The cleanup amendment is projected to activate at 09:34 UTC on October 23, while votes continue to be evaluated at flag ledgers approximately every 16.5 minutes.

Overall, the developments point to continued improvements in XRPL’s technical infrastructure and growing support for network maintenance. Although lending services still require separate approval, future upgrades could improve reliability and broaden the XRP Ledger’s role beyond payments and settlement.