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XRP Ledger Introduces Gated Trading Venues
The XRP Ledger has implemented the XLS-81 “Permissioned DEX” amendment, which enables regulated institutions to access controlled trading environments. However, XRP ((CRYPTO: XRP) continues to face challenges in building its momentum.
Overview of XLS-81 Functionality
The XLS-81 upgrade establishes a controlled version of the decentralized exchange on XRPL, where only authorized participants can engage in trading. This system can be likened to a members-only marketplace, where trading functionalities are built into the ledger but access is limited to compliant institutions.
Target Audience for Permissioned DEX
This feature is designed for banks and brokers seeking blockchain solutions for settlement and liquidity but unable to partake in entirely open DeFi markets. For these entities, establishing controlled access is not optional; it is essential for compliance with regulations such as anti-money laundering and know-your-customer practices.
Significant Recent Developments
Last week, XRPL also activated XLS-85 Token Escrow, broadening escrow functionalities to all trustline-based tokens, including stablecoins like RLUSD and tokenized real-world assets. The combination of these two upgrades offers regulated finance a comprehensive toolkit on XRPL, facilitating conditional asset settlements and a regulated trading environment.
Implications of the Shift in Strategy
While these upgrades provide advanced capabilities, they signify a shift away from the open DeFi model prominent in previous cycles. Instead of reinforcing permissionless trading venues, the XRPL is building infrastructure to cater to the operational and compliance needs of traditional financial institutions. This strategic change follows Ripple’s partnership with Aviva Investors for tokenizing funds on XRPL, highlighting increasing interest in regulated asset issuance.
XRP’s Current Market Position
XRP is currently consolidating within the range of $1.40-$1.50, dangerously close to the capitulation low of $1.15-$1.20. The market remains bearish, with multiple resistance levels above, presenting challenges for a rebound. A daily close below $1.40 could raise concerns about further declines toward the psychological $1.00 level.
