Evernorth explores DeFi on XRP Ledger as native lending proposal advances
Evernorth plans to use XRP holdings in DeFi
Evernorth, a company that manages digital assets focused on XRP, plans to use its XRP holdings in decentralized finance (DeFi) activities. The company is also preparing to go public. Sagar Shah, Evernorth’s Chief Business Officer, shared these plans at the Wyoming Blockchain Symposium 2026.
The XRP Ledger, the blockchain network that supports XRP, is reviewing a proposal called XLS-66. This proposal aims to add native lending functionality directly to the ledger. If approved, it could allow users to lend and borrow assets without relying on separate smart contracts.
Key details about the proposal and Evernorth’s plans
- Evernorth was created as an XRP-focused digital asset treasury to actively use its holdings, not just hold them.
- The XLS-66 proposal would add lending features directly to the XRP Ledger, which may reduce risks compared to DeFi applications built on other blockchains.
- Validators, the entities that help secure the XRP Ledger, are currently reviewing the code for XLS-66.
- Evernorth’s Chief Business Officer, Sagar Shah, previously worked at Ripple for five years.
- Shah mentioned other potential features for the XRP Ledger, such as confidential transfers and smart escrows, which could help tokenize real-world assets.
What the XLS-66 proposal could mean
Sagar Shah explained that the XLS-66 proposal is designed to bring lending functionality directly into the XRP Ledger. This approach differs from many other blockchains, where lending is typically handled through smart contracts—computer programs that run on the blockchain.
Shah argued that building lending features directly into the ledger could reduce risks, such as smart contract exploits, which have caused problems on other networks. Validators are currently assessing the proposal’s code to ensure it is secure and robust.
Potential for tokenized real-world assets
Shah also highlighted other features that could expand the XRP Ledger’s use in real-world assets. These include confidential transfers, which keep transaction details private, and smart escrows, which hold assets securely until certain conditions are met.
According to Shah, about $30 billion in assets are currently tokenized—meaning they are represented as digital tokens on a blockchain. He suggested that the market for tokenized assets could grow much larger, potentially reaching trillions of dollars.
What is confirmed
- Evernorth is an XRP-focused digital asset treasury planning to use its holdings in DeFi activities.
- The company is in the process of going public.
- The XRP Ledger is reviewing the XLS-66 proposal, which aims to add native lending functionality.
- Validators are currently assessing the code for XLS-66.
- Sagar Shah, Evernorth’s Chief Business Officer, previously worked at Ripple for five years.
- Shah mentioned potential features like confidential transfers and smart escrows for the XRP Ledger.
- About $30 billion in assets are currently tokenized, according to Shah.
What is still unclear
- Whether the XLS-66 proposal will be approved and implemented on the XRP Ledger.
- The timeline for Evernorth’s plans to go public.
- How much of Evernorth’s XRP holdings will be used in DeFi activities.
- Specific details about how the native lending functionality would work if approved.
Why this matters for the XRP Ledger ecosystem
The XLS-66 proposal could make the XRP Ledger more attractive for DeFi activities by adding lending features directly to the network. This could reduce risks compared to other blockchains where lending relies on smart contracts, which have been vulnerable to exploits in the past.
If approved, the proposal could also help the XRP Ledger compete with other blockchains in the growing market for tokenized real-world assets. Shah’s comments suggest that the company sees significant potential in this area, with the current $30 billion market possibly expanding to trillions of dollars.
