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XRPL has enabled DEX upgrade allowed on mainnet.
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This upgrade further enables compliant exchanges between institutional users.
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It follows upgrades to the authorized domain and credentials that went live earlier.
The XRP Ledger has received a new upgrade with permissioned DEX functionality going live on the network. This feature aligns with Ripple’s institutional DeFi roadmap, which aims to integrate more traditional financial giants (TradFi) into the network.
XRP analytics data shows that the upgrade is now available on the network, following validator consensus two weeks ago. This also follows upgrades to allowed domains and credentials, which went live two weeks ago.
As Ripple noted, these three upgrades go hand in hand to allow institutions to access compliant liquidity pools on the XRP Ledger. Authorized DEXs are order books within the native DEX that only accept trades from accounts that meet domain requirements.
Additionally, authorized domains create a regulated environment for these institutions, ensuring that only users with the necessary credentials to participate as a verified issuer can access them. Credentials are verifiable attestations of identity or compliance status, such as KYC and AML tools, that allow institutions to ensure they are not trading with bad actors.
As such, these features serve as a bridge for TradFi’s entry into DeFi, enabling compliant access to on-chain liquidity. The move comes as more institutions continue to adopt blockchain technology. As CoinGape reported, BlackRock recently ventured into DeFi with the launch of its BUIDL token on Uniswap.
The XRP Ledger is also seeing institutional adoption, with TradFi giants moving towards tokenizing real-world assets on the network. Ripple recently partnered with Aviva Investors to launch traditional fund products tokenized on XRPL.
As CoinGape reported, according to data from RWA.xyz, 63% of tokenized US Treasuries are now on XRPL. The authorized DEX upgrade is expected to boost trading of these RWAs, as Ripple noted that it will enable secondary markets for RWAs or exchanges with full AML and KYC controls.
The XRP Ledger will see more upgrades this year as Ripple and other developers implement compliance-focused features to onboard more institutions. Some of these features focus on privacy to help secure transactions made by these companies.
XRPL Validator Vet recently highlighted the Confidential Transfers feature, which allows account balances and transaction amounts to be hidden on the network. This came as Binance founder Changpeng “CZ” Zhao described privacy as the missing link for crypto payments adoption.
