Key stakeholders in the Ripple-backed XRPL ecosystem want the chain optimized to drive institutional DeFi strategies and capital deployment similar to Ethereum’s ‘yield vaults.’ 

In a recent statement, Evernoth, one of the top XRP treasury firms, said it will make the upcoming ‘XRP Lending Protocol’ its core digital asset strategy.  

“It’s (lending protocol) what we believe could be a fundamental shift in how institutional liquidity moves onchain.”

According to Asheesh Birla, CEO at Enernorth, the move will further drive XRP DeFi. 

“By participating in this native lending ecosystem, Evernorth aims to help unlock what could be a multi-billion-dollar annual yield opportunity for the XRP community.”

For the firm, the lending protocol is the ‘missing piece’ for XRP DeFi. The upgrade, also known as XLS-66, is currently on a testnet, seeks to enable single-asset vaults to drive fixed-rate loans. 

State of XRPL DeFi

Although the XRPL DeFi ecosystem has seen some traction since 2025, the chain lags behind its rivals in the top 10 assets by market cap.

At press time, its DeFi ecosystem’s TVL (total value locked) had dropped from around $100 million to $60 million. 

In contrast, its closest rivals, BNB chain and Solana, had $6.5 billion and $9.3 billion, respectively, in TVL. This signalled that the two chains had a deeper DeFi liquidity and, by extension, higher investor trust than XRPL. 

Although the chain has scored several institutional partnerships, including Japan’s Gumi and SBI, its DeFi activity has lagged behind its perceived peers. It remains to be seen how the upcoming lending protocol upgrade will help it close the DeFi gap with its rivals. 

However, Ripple’s stablecoin RLUSD is amongst the fastest-growing and recently crossed above $1 billion in supply. 

XRP whales flash mixed signals

On the market side, 42 wallets with over 1 million XRP tokens have returned for the first time since September. Their recent accumulation spree was an ‘encouraging sign for the long-term prospect of the altcoin, noted analytics firm Santiment. 

However, according to the 30-day XRPL Whale Flow, large XRP players are still net sellers at press time. But it’s worth pointing out that this pressure had eased slightly in January, as shown by the metric climbing slowly higher. 

If the metric surges to the neutral position or turns positive, a firm XRP price recovery for the altcoin may be likely. At press time, XRP consolidated recent losses around $1.7, waiting for the next broader market direction. 

Final Thoughts 

• XRP treasury firm Evernorth was betting on the upcoming ‘lending protocol’ upgrade as a key DeFi unlock and strategy. 
• XRP whales flashed mixed signals; wallets holding +1 million XRP tokens back to slow accumulation, but some were still dumping their stash. 

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Author: Benjamin Njiri