The XRP Ledger has released version 3.4.0 of its core software, introducing new lending rules, protocol fixes, and performance improvements for network operators. The proposed lending changes will not take effect automatically and still require validator support before they can become active on the XRP Ledger.

XRPL 3.4.0 Introduces Lending Protocol Changes

The XRP Ledger Foundation announced the release of xrpld 3.4.0 on Sept. 16, adding two amendments for validator consideration. The release includes LendingProtocolV1_1 and fixCleanup3_4_0, while retiring the fixAMMOverflowOffer amendment.

LendingProtocolV1_1 expands Single Asset Vaults through closed-ended vaults and cash-basis accounting. Under the proposed structure, vaults would operate through three phases: subscription, investment, and redemption.

During the subscription phase, users can deposit assets into a vault before the investment period begins. Both deposits and withdrawals pause during the investment period, while pooled funds can be used to originate loans. Redemption begins after the investment period ends, allowing participants to recover their shares as eligible loans mature. Once the amendment activates, new loan brokers would also be required to use closed-ended vaults.

Cash-basis accounting, meanwhile, would recognize interest as income only when borrowers actually make payments. This differs from the previous model, which recognized scheduled interest at the time loans were originated. Cash-basis recognition is generally regarded as the more conservative of the two approaches, since a vault's reported income reflects only payments actually received rather than amounts still owed by borrowers.

XRP Ledger version 3.4.0 is now available ✅ New amendments for voting: – Lending Protocol v1.1 – closed-ended vaults and cash-basis accounting. – fix Cleanup – bundled fixes. Performance and Stability: – Online delete now pauses on ledger history gaps, so nodes stay closer… pic.twitter.com/hiW8XuL2AZ

— XRP Ledger Operations (@XRPLOperations) September 17, 2026

New Release Adds Protocol and Performance Fixes

Beyond lending, XRPL 3.4.0 introduces a broad collection of protocol corrections and network improvements. The fixCleanup3_4_0 amendment bundles fixes addressing issues vaults, automated market makers, Multi-Purpose Tokens (MPTs), NFTs, escrow, and permissioned trading.

For instance, the update changes AMMClawback behavior when MPT rounding produces a zero recovery amount. It also strengthens MPT balance and transfer checks that previously generated log entries rather than enforcing protocol invariants.

The release also adds distinct signing hash prefixes for counterparty and sponsor signatures, preventing a signature created for one role from being replayed as another.

At the node level, online deletion now pauses when recent ledger history contains gaps. As a result, servers can remain closer to the latest ledger while managing historical data. Developers also optimized MPT freeze checks and hardened peer-message handling, and additional fixes address oversized transaction lists, database operations, malformed inputs, and other edge cases.

Validator Voting Still Determines Lending Activation

Importantly, installing XRPL 3.4.0 does not activate the proposed lending changes automatically. The amendments still require sufficient validator support before they become network rules. XRPL's amendment process requires an amendment to receive more than 80% support from trusted validators continuously for two weeks.

The software release therefore provides the code needed to support LendingProtocolV1_1, while activation remains subject to validator voting. The underlying lending architecture also remains significant, as the new amendment extends the ledger's existing Single Asset Vault and Lending Protocol functionality.

The Foundation has urged server operators to upgrade to version 3.4.0 as soon as possible. Linux DEB and RPM packages are now hosted through packages.xrplf.org and signed using an XRPL Foundation key. Operators running older versions may therefore need to update their repository configuration before installing the new release.

For now, XRPL 3.4.0 establishes the technical foundation for expanded lending functionality while strengthening the network's underlying infrastructure. The next milestone is validator voting itself: sustained support above the 80% threshold across the required two-week window would move either amendment from available code into active ledger rules.