The new system combines off-chain credit decisions with onchain enforcement, pointing to a hybrid lending model on the XRP Ledger.
Ripple said it has introduced an onchain lending protocol for XRPL that separates credit underwriting from settlement and enforcement. The model uses off-chain credit decisions while keeping loan execution and enforcement onchain, a structure that could help bring real-world lending practices to blockchain-based markets while preserving automated settlement on the XRP Ledger.