Ripple has teamed up with blockchain security firm Immunefi for a global “Attackathon” offering $200,000 in rewards. The event invites ethical hackers to find flaws in the XRPL Lending Protocol — a new system for institutional lending on the XRP Ledger. Running from October 27 to November 29, 2025, this challenge aims to ensure the protocol is fully secure before it becomes available for real-world use.
The initiative underscores Ripple’s focus on safety and transparency as it expands beyond payments into institutional finance. By combining Ripple’s blockchain expertise with Immunefi’s proven bug bounty system, the company hopes to prevent issues that could threaten fund security or overall system stability.
Redefining Blockchain Lending
The XRPL Lending Protocol, developed under XLS-66, takes a different approach from typical DeFi lending models. Instead of relying on smart contracts or on-chain collateral, it evaluates borrowers’ creditworthiness off-chain. Institutions can apply their internal risk models, while loans and repayments are still recorded transparently on the XRP Ledger.
This off-chain assessment model bridges blockchain technology with traditional finance, giving institutions the ability to operate within regulated structures while benefiting from on-chain efficiency. Ripple believes this balance could help financial entities integrate blockchain-based lending without sacrificing compliance or control.
How the Attackathon Works
The event is divided into two stages: learning and testing. From October 13 to October 27, Ripple will host “Attackathon Academy,” offering walkthroughs, documentation, and Devnet access to help participants understand XRPL’s technical architecture.
Once the competition begins, white-hat hackers will have one month to identify and report bugs in the system. Researchers will focus on areas such as vault logic, liquidation mechanics, interest rate calculations, and access controls. All submissions must include proof-of-concept demonstrations to qualify.
If a critical exploit is found, the entire $200,000 prize pool will be awarded. If no major bugs are discovered, $30,000 will still be distributed among participants who make valuable contributions or uncover minor issues.
Built on a Secure Foundation
The XRPL Lending Protocol integrates several related standards, including XLS-65 for single-asset vaults, XLS-33 for multi-purpose tokens, XLS-70 for credentials, and XLS-80 for permissioned domains. These interconnected components are designed to strengthen XRPL’s ecosystem and provide a secure foundation for institutional-grade DeFi applications.
Ripple’s decision to hold a global bug-hunting competition highlights its proactive stance on risk management. By opening its systems to public testing before launch, Ripple aims to earn institutional trust and establish XRPL as a reliable platform for real-world financial solutions.
Merging TradFi and DeFi
Ripple’s long-term vision involves blending the best aspects of traditional finance (TradFi) and decentralized finance (DeFi). Through the XRPL Lending Protocol, the company seeks to offer blockchain-based lending that aligns with institutional standards of compliance, transparency, and efficiency.
Traditional financial players have often hesitated to adopt DeFi due to concerns over volatility, regulation, and smart contract risk. Ripple’s design addresses these pain points by allowing lenders and borrowers to work within familiar frameworks, while still using blockchain technology for faster settlement and public verification.
Institutions that need collateralized arrangements can manage them through licensed custodians or tri-party agreements, with XRPL serving as the execution layer. This flexibility could make the protocol an attractive entry point for banks and credit firms exploring blockchain-backed lending.
Immunefi’s Role in Securing DeFi
Immunefi, known for its extensive work with protocols such as Polygon, Synthetix, and Chainlink, brings significant experience to the table. Its platform has paid out hundreds of millions in bounties, rewarding ethical hackers for uncovering vulnerabilities in DeFi systems.
By partnering with Immunefi, Ripple gains access to a network of expert researchers skilled in identifying complex attack vectors. The collaboration signals a growing partnership between traditional fintech companies and Web3-native security organizations — a necessary step as institutional players move closer to blockchain adoption.
A Path to Institutional Trust
Security has become a central concern for financial institutions exploring blockchain. High-profile exploits in DeFi have resulted in billions of dollars in losses, creating skepticism among banks and regulators. Ripple’s decision to conduct a public security audit through a competitive program could set a new standard for institutional readiness in DeFi.
If the Attackathon confirms the protocol’s resilience, Ripple could establish a strong foundation for regulated blockchain lending. This would not only expand XRPL’s capabilities beyond payments but also position it as a core infrastructure for tokenized credit markets.
Setting a New Benchmark
Ripple’s $200K Attackathon represents more than a bug hunt — it’s a statement about the future of secure, compliant blockchain finance. By involving the global research community, Ripple ensures transparency and accountability before releasing the protocol.
As the event unfolds later this month, the results could define how blockchain projects approach security and trust. If successful, the XRPL Lending Protocol may pave the way for a new era of institutional DeFi, where innovation and regulation finally move in sync.
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