Major XRP Ledger Fix Goes Live While Japanese Exchange Boosts XRP Yield

The XRP Ledger (XRPL) has rolled out a long-awaited protocol upgrade while XRP-linked services continue to expand in Japan, highlighting a period of technical refinement and growing real-world usage for the network.

XRPL Removes Long-Standing Directory Bottleneck

On Thursday, the XRP Ledger activated the fixDirectoryLimit amendment, eliminating an outdated hard cap that previously limited how many objects could be stored within a single directory on the ledger. The restriction had been a source of friction during periods of heavy network activity, causing otherwise valid transactions to fail.

Directories on the XRPL function like folders in a filing cabinet, grouping similar ledger objects together. One of the most visible examples is the decentralized exchange order book, where offers placed at the same price level are grouped into a shared directory.

Under the old system, each directory was limited to a fixed number of “pages.” 

When that cap was reached, no new objects could be added, even if users had sufficient XRP to pay transaction costs. In such cases, transactions would fail with a tecDIR_FULL error, frustrating traders and developers alike during high-volume trading periods.

Economic Reserves Replace Hard Code Limits

The fixDirectoryLimit amendment removes the arbitrary ceiling entirely. 

Instead of relying on hard-coded limits, the network now depends solely on Owner Reserves to prevent spam. Creating XRP Ledger objects such as offers requires users to lock up XRP, introducing an economic cost that naturally limits excessive object creation.

With the change, validators no longer need to check whether a directory has reached capacity, reducing unnecessary computation. For users and applications, the result is a more predictable and resilient trading environment, particularly during moments of heightened market activity.

Developers have long argued that reserves alone were sufficient to protect the network, making the directory page limit redundant. Its removal is expected to improve the reliability of decentralized trading and reduce edge-case failures that had little to do with network health.

A Busy Year for XRP Ledger Development

The directory fix marks the first major XRP Ledger amendment of the year, following a series of functional upgrades rolled out in recent months. Earlier changes introduced a clawback feature for Automated Market Maker pools, adding greater flexibility and compliance options for liquidity providers.

The network also launched DynamicNFT capabilities, allowing non-fungible tokens on the XRPL to update their metadata over time without being destroyed and re-minted.

SBI VC Trade Reopens XRP Lending in Japan

Alongside protocol-level improvements, XRP adoption is also expanding through financial products in Japan. SBI VC Trade, a major Japanese cryptocurrency exchange and subsidiary of SBI Holdings, announced a new recruitment round for its Rent Coin cryptocurrency lending service.

The recruitment period started on Dec. 18 at 20:00 Japan Standard Time. The service currently supports lending for 34 digital assets, including XRP, Bitcoin, Ethereum, and Dogecoin.

How the Rent Coin Service Works

Formally structured as a consumption loan agreement, Rent Coin allows users to lend their cryptocurrency to SBI VC Trade for a fixed term, typically ranging from one week to 28 days. In exchange for locking up their assets, participants receive a usage fee paid in the same cryptocurrency.

The model offers a way for holders to generate returns on idle crypto, which otherwise earns nothing when simply held in a wallet. However, applications are approved on a first-come, first-served basis, and popular assets such as XRP often reach capacity quickly and move to waitlists.

SBI VC Trade first launched its lending service in November 2020 with support limited to Bitcoin. Following a merger with TaoTao and a platform overhaul, the exchange rebranded the service as Rent Coin and expanded support to include XRP and Ethereum.

Infrastructure Upgrades Meet Real-World Use

The activation of fixDirectoryLimit and the renewed availability of XRP lending through SBI VC Trade are part of a broader trend within the XRPL ecosystem. Technical constraints at the protocol level are being removed, while institutional platforms continue to build financial products that integrate XRP into everyday market activity.

As the network enters the new year with fewer bottlenecks and deeper ties to traditional finance, attention is turning to how those improvements translate into liquidity, stability, and long-term adoption for the XRP Ledger.