Evernorth Backs XLS-66 to Enable Institutional-Grade XRP Yield

Asheesh Birla, CEO of XRP treasury company Evernorth, expressed excitement about efforts to unlock native, institutional-grade yield on idle XRP.

This comes as Evernorth publicly backed the XRP Lending Protocol (XLS-66), emphasizing that it could strengthen its treasury strategy while accelerating institutional DeFi adoption on the XRP Ledger (XRPL).

• Evernorth supports efforts to unlock native, institutional-grade yield from idle XRP.
• XLS-66 introduces a native XRP lending framework built directly on the XRP Ledger.
• The proposal has now entered the validator voting phase following the release of XRPL v3.1.0.
• Despite growing concerns, analysts suggest that the amendment will complement, not replace, third-party lending initiatives.

Meanwhile, Evernorth CBO Shagar Shah outlined the rationale for the support, noting that the proposal aims to convert idle XRP on exchanges and in cold storage into yield-generating assets.

The XLS-66 amendment introduces a native XRP lending framework built directly on XRPL. Specifically, it proposes Single-Asset Vaults that support fixed-term, fixed-rate lending, while enabling predictable returns.

Notably, assets remain fully on-ledger, eliminating the need for bridges, wrappers, or external DeFi platforms. Evernorth’s support signals that XLS-66 could evolve from theory into real-world treasury applications. If adopted, the protocol could shift XRP from idle holdings to productive on-chain capital.

For institutions, Evernorth stated that XLS-66 offers a compliant and streamlined way to earn yield without moving assets across chains. Consequently, organizations can reduce tax exposure, operational complexity, and smart-contract risks while using a structure aligned with traditional treasury management.

Similarly, for users and the broader XRPL ecosystem, the proposal could improve capital efficiency, deepen on-chain liquidity, and expand XRP’s utility beyond payments and settlement.

As a result, XLS-66 may strengthen XRPL’s role as a versatile financial infrastructure for both retail and institutional participants.

Reacting to the development, Birla expressed excitement, while emphasizing that the proposal lays the foundation for institutional DeFi vaults with a user experience tailored to large, regulated entities.

As part of its review, he confirmed Evernorth is assessing how XLS-66 could generate yield on its treasury-held XRP. Evernorth is actively building the world’s largest XRP treasury.

Following a $1 billion raise from investors including SBI Holdings and Ripple, the company accelerated its accumulation strategy. According to data from CryptoQuant, Evernorth currently holds 388.71 million XRP, valued at around $744.15 million.

In the meantime, the XLS-66 proposal recently entered the validator voting phase following the release of XRPL v3.1.0. Following its advancement, some XRP community members have questioned how it could affect existing third-party projects that already generate yield for XRP holders.

Currently, platforms such as Flare, Axelar, and Hex Trust offer yield opportunities that require users to convert XRP into wrapped tokens and deploy them across DeFi protocols. Notably, some investors worry that XLS-66 could eventually displace these services.

In response, prominent dUNL validator Vet dismissed these concerns, explaining that native XRPL lending would complement third-party offerings. For example, Vet noted that users could transfer FXRP from Flare back to XRPL for vault-based lending and later return it to Flare in pursuit of additional yield opportunities.