Ripple Enhances XRP Ledger Security Amid Lending Protocol Development

Ripple is actively working to improve the security of the XRP Ledger (XRPL) as it gears up for the introduction of a new lending protocol. The company has proposed eliminating over 10,000 lines of unused XChainBridge code while its Lending Protocol V1.1 undergoes an AI-focused security review through Sherlock’s Audit Engine.

This initiative comes in response to the growing need for robust security measures across the crypto industry, which reported losses exceeding $1.31 billion from 344 security incidents in the first half of 2026. The prevalence of code vulnerabilities has been a significant concern, prompting Ripple to streamline its codebase.

Rationale Behind Code Removal

The decision to remove the XChainBridge code stems from Ripple's shift towards using Axelar for the XRPL EVM Sidechain, leading to diminished demand for the original bridge functionality. The XLS-38 architecture, intended to facilitate asset movement between XRPL and connected sidechains, is now deemed unnecessary. Ripple argues that maintaining outdated code introduces unnecessary complexity and potential security risks.

Lending Protocol Development

As Ripple prepares to launch Lending Protocol V1.1, the company acknowledges the increased security challenges associated with financial interactions. This protocol aims to integrate native borrowing and lending capabilities into XRPL, enhancing its functionality with features like loan lifecycle management and interest-rate calculations. An intensive AI-only security review of V1.1 is currently underway, with findings expected to be disclosed upon completion.

Industry Context

The urgency of these security enhancements is underscored by a broader trend of rising vulnerabilities within the crypto sector. Recent reports indicate that attackers are increasingly exploiting older contracts, emphasizing the need for continuous vigilance and proactive security measures.