What Is XLS-65?
The Single Asset Vault amendment brings native asset pooling to the XRP Ledger. Think of it as an on-chain vault where multiple depositors contribute a single asset type (XRP, IOUs, or MPTs) and receive proportional shares representing their ownership. No smart contracts, no external bridges—just a new ledger-level primitive built directly into the protocol.
How It Works
When someone creates a vault, the ledger automatically spins up a pseudo-account that holds all deposited assets and issues shares to depositors proportional to their contribution. These shares are issued as Multi-Purpose Tokens (MPTs). Want your assets back? Return your shares and withdraw.
Why It Matters
A significant DeFi unlock. Vaults enable pooled asset management at the protocol level. This is a building block for lending protocols, yield strategies, and treasury management, all running natively on the XRPL with the speed and cost advantages that come with it.
Flexible access control. Vault owners can configure vaults as public (anyone can deposit) or private (credential-gated access using the Permissioned Domains standard). Shares can be made transferable or permanently bound to the original depositor. Four distinct vault configurations cover a range of use cases: from open community pools to restricted institutional vaults.
Composability. XLS-65 is designed to work with other XRPL amendments. It integrates with XLS-66 (Lending Protocol) through a LossUnrealized field that allows connected protocols to signal paper losses, which the vault's withdrawal algorithm accounts for automatically. This kind of protocol-level composability is usually hard to achieve.
Built-in safeguards. The amendment introduces multiple built-in safeguards designed to enhance reliability and asset safety:
Vault operations bypass issuer transfer fees, keeping pool mechanics predictable
Frozen assets cannot be deposited, and withdrawals are restricted when assets are frozen (though issuers can always receive frozen funds back)
Vault deletion is blocked until all assets and shares are fully withdrawn
Issuers retain clawback authority over IOU and MPT assets held in vaults
What We Tested
Before casting our vote, we ran a comprehensive test suite against the XRPL Devnet: 257 test cases across 10 categories covering every transaction type, edge case, and adversarial scenario we could identify.
257 tests passed (100%):
We verified:
All four exchange algorithm formulas match the specification
Authorization boundaries are properly enforced (owner-only operations, credential-gated access)
Immutable fields cannot be modified after creation
Reserve requirements are correctly applied and released
Transfer fee bypass works as specified
Frozen asset protections function correctly
The February 2026 Batch Amendment vulnerability reinforced why adversarial testing matters. We specifically tested for authorization boundary gaps and validation loop completeness. Nothing surfaced.
Run Your Own Tests
Don't take our word for it. We built a testing environment so you can validate XLS-65 behavior on Devnet yourself before it activates: tests.xrpl-commons.org
Our Vote
We voted yes on XLS-65.
The Single Asset Vault amendment is a well-designed primitive that extends the XRPL's native capabilities into pooled asset management. The specification is thorough, the Devnet implementation aligns exactly with the spec, and the security model is robust. It provides a foundation for more sophisticated financial protocols while preserving the simplicity and performance characteristics that define the XRP Ledger. The core vault functionality is solid.
Explore it:
XLS-65 spec:
https://xls.xrpl.org/xls/XLS-0065-single-asset-vault.html
