The XRP Ledger's reference server software,
xrpld, reached version 3.4.0 on September 17. The release adds a new amendment called LendingProtocolV1_1, which extends the ledger's lending system with closed-ended vaults, but the feature still needs validator approval before it can activate on-chain.
A New Amendment Ships in the Code
XRPL Foundation released xrpld version 3.4.0 on September 17, adding two new amendments alongside bug fixes and build improvements. The headline change, LendingProtocolV1_1, extends the ledger's existing lending architecture with support for closed-ended vaults and cash-basis accounting.
Closed-ended vaults operate across defined phases covering subscription, investment and redemption. Those phases determine when assets can enter the vault, when loans can be originated and when users can redeem their assets.
The accounting change matters too. Under cash-basis accounting, interest is recognized when payments actually arrive, rather than treating scheduled interest as income immediately when a loan originates. For on-chain credit markets, that changes how a vault represents what has genuinely been earned.
Code Ships Before the Amendment Activates
Shipping a new xrpld version does not automatically switch on every feature it contains. The XRP Ledger uses an amendment process under which validators must signal sufficient support before protocol changes become enabled.
So v3.4.0 gives node operators the code needed for LendingProtocolV1_1, but the amendment still needs the required validator consensus before those rules become active on the ledger. XRPLF is already encouraging server operators to upgrade to maintain service continuity, letting the software propagate across the network before the consensus-level feature becomes binding.
For users, there may be nothing visible to do today. For node operators and developers building around native lending infrastructure, though, v3.4.0 is the version that starts putting the next iteration of that system into place.
Source: XRPL Foundation GitHub release
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