Key Highlights
- Ripple has initiated an AI-only security audit of Lending Protocol V1.1 for the XRP Ledger through the Sherlock Audit Engine.
- The Sherlock Audit Engine combines multiple AI auditors and frontier models with specialized security capabilities to examine protocol code.
- The review is designed to adapt to the protocol’s complexity and scope, with a focus on security coverage and rigorous testing.
Ripple has begun an intensive, AI-only security review of Lending Protocol V1.1 for the XRP Ledger. The review is being conducted through the Sherlock Audit Engine, according to an announcement from Sherlock.
The Audit Engine combines leading AI auditors and frontier models equipped with specialized security skills. The system adapts the review process to the scope, complexity, and depth required by the protocol under examination.
Sherlock stated that Ripple is among the teams putting AI-only security review into practice, with attention directed toward rigor, coverage, and real-world results. The firm indicated that a full account of the review would be provided once the process is complete.
Details of the review process
The security review focuses specifically on Lending Protocol V1.1 developed for the XRP Ledger. The engagement is described as AI-only, meaning the analysis is performed by artificial intelligence systems rather than traditional human auditor teams as the primary method.
Sherlock Audit Engine is designed to apply multiple AI models and specialized security tooling in a coordinated manner. The approach allows the review to scale according to the technical characteristics of the code being examined.
No timeline for completion or intermediate findings has been released. Sherlock noted that further information would follow after the review concludes.
Context of AI Applications in crypto infrastructure
The Ripple review occurs amid broader activity involving artificial intelligence systems in cryptocurrency platforms and protocols.
On August 27, Coinbase announced the development of tools that enable artificial intelligence agents to interact with crypto accounts, execute transactions, and make payments with limited human involvement. The company described the concept as “Agentic Finance,” also referred to as AiFi.
The Coinbase products address two primary areas: AI-assisted management of financial accounts and automated payments between software systems. Users can establish permissions and limits before an agent carries out a transaction. One component, Coinbase for Agents, allows applications such as ChatGPT, Claude, and Cursor to connect to Coinbase accounts using the Model Context Protocol.
Separately, Virtuals Protocol expanded its AI agent tokenization system to Solana. The system, announced on August 24, allows users to create tokens associated with AI agents and connect those agents to wallets and other on-chain services.
Depending on configuration, an agent may receive payments, pay for services, interact with other applications, and conduct transactions through its wallet.
The Coinbase and Virtuals Protocol developments illustrate parallel efforts to integrate artificial intelligence agents with blockchain-based accounts and transaction systems. Coinbase’s approach centers on permissioned interaction with existing user accounts through established AI applications. Virtuals Protocol focuses on tokenizing AI agents and enabling them to hold and use wallets for direct on-chain participation.
Relation to XRP ledger development
Lending Protocol V1.1 is being prepared for the XRP Ledger. The security review forms part of the preparation process prior to any potential deployment or further public release of the protocol.
Sherlock’s announcement did not specify the exact scope of code under review beyond the designation Lending Protocol V1.1, nor did it detail the particular AI models involved or the expected duration of the engagement.
The announcement was issued by Sherlock on the social media platform X. Ripple has not issued a separate public statement regarding the start of the review at the time of the Sherlock post.
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