XRP Ledger Just Passed a Major Security Audit. So Why Is XRP Still Falling?

Ripple’s XRP Ledger (XRPL) has cleared a major security hurdle as its lending protocol passed a comprehensive re-audit. Cybersecurity firm Halborn announced the successful completion of a re-audit of the protocol’s codebase. The platform confirmed that the audit found no critical vulnerabilities.

Despite this important development within the Ripple ecosystem, its native token, XRP, continues to trade in the red zone. Although the altcoin showed slight positive signals immediately after Halborn’s announcement, it has since started plunging.

Ripple’s XRPL lending protocol wins key security audit

According to the latest reports, Ripple has gained a fresh security boost for its proposed XRP Ledger lending protocol ahead of its possible launch. As Halborn revealed, the protocol has completed a new re-audit of its codebase, with no critical vulnerabilities identified.

Notably, Halborn carried out the re-audit between December 16, 2025, and January 12, 2026. During this period, the cybersecurity firm had been closely reviewing the updated code of XRP Ledger’s lending protocol. To ensure the protocol’s security, the platform analyzed several key areas, including transaction validation, parameter limits, state consistency, accounting logic, and access controls.

Halborn flags five findings

Following this detailed review, Halborn confirmed that the overall findings were positive. Although the audit unveiled five issues, none of them were critical or high risk. According to the report, the identified issues were listed as one medium-severity issue, two low-risk issues, and two informational findings.

What is more optimistic about these findings is that they were addressed. While some issues were directly solved by Ripple’s engineering team, others were reviewed and officially acknowledged depending on their severity.

The most serious issue identified was a possible way to bypass vault asset limits through loan interest calculations. However, the issue has been successfully resolved. Another risk involved was a low-risk flaw connected to a missing freeze check in the LoanBrokerSet function. This issue was also reportedly fixed. Other findings include a degraded state design issue, a grace period edge case, and a cover rate validation concern.

XRP Ledger’s different approach to DeFi lending

Interestingly, XRP Ledger’s lending protocol is built in a different way. Unlike other DeFi protocols, XRPL’s lending system is designed to support fixed-term, uncollateralized loans. They will be funded through pooled liquidity held in a Single Asset Vault. This means that the borrowers will not have to lock up more assets than they borrow. Under this system, loan brokers play an important role as they need to set lending terms, manage vaults, and oversee borrowing relationships.

It is also worth noting that the proposed XLS-65 and XLS-66 amendments are expected to bring native vaults and fixed-rate lending directly on the XRP Ledger. If amended, they will bring a more structured credit market to the XRP Ledger.

XRP price continues to fall

The current condition of the XRP market is significantly alarming. This is because the token is still posting losses despite the XRPL’s successful re-audit. After surging to $1.11 earlier today, the XRP price has again declined to a low of $1.07.

At the current price, the Ripple token is down by nearly 2% in a day. XRP has also seen more notable corrections of 10% and 20% in a week and a month, respectively. The trading volume has plummeted over the past 24 hours, dropping by about 3% to $1.45 billion.