 ▲ XRP (XRP) / AI-generated image |
The XRP Ledger has officially activated a regulatory-compliant decentralized exchange (DEX) upgrade for institutional investors, establishing a strong foundation to accelerate the inflow of global financial institutions into its ecosystem.
According to cryptocurrency media outlet U.Today on February 18 (local time), the XRP Ledger ecosystem recently completed the XLS-68d upgrade, which introduces a Permissioned DEX feature. This implementation is designed to allow asset issuers to pre-verify and restrict users eligible to participate in liquidity pools, thereby meeting the stringent regulatory guidelines required by traditional financial institutions. For institutional investors who have been concerned about legal risks in anonymous trading environments, this presents a decisive technical solution for entering the ecosystem.
The core of the new upgrade lies in its ability to integrate Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures at the protocol level. Asset issuers can create customized liquidity pools that limit participants to residents of specific countries or verified qualified institutions. This approach is evaluated as combining the transaction transparency demanded by regulators with the efficiency of decentralized finance. With this upgrade, XRP’s vision of Institutional DeFi has moved into a stage of practical implementation.
Ripple’s strategy for tokenizing real-world assets (RWA) is also expected to gain momentum with the launch of the Permissioned DEX. As regulated exchanges such as Archax have already introduced tokenized funds utilizing the XRP Ledger, producing visible results, this technological enhancement is likely to serve as a catalyst for attracting more asset managers. Experts believe this will accelerate the digital transformation of cross-border remittances and traditional asset markets worth trillions of dollars on the XRP Ledger.
While Bitcoin (BTC) and Ethereum (ETH) maintain their dominance in the market, XRP is establishing a distinct position by emphasizing regulatory compliance as its key differentiator. Amid the pro-cryptocurrency stance of the administration of U.S. President Donald Trump and the anticipated introduction of regulatory frameworks such as digital asset market structure legislation, the technical sophistication of the XRP Ledger is drawing increasing attention. In particular, stable open interest trends suggest that market participants are recognizing XRP’s value as a regulation-friendly infrastructure.
The launch of the XRP Ledger’s Permissioned DEX marks a milestone demonstrating that digital asset technology has matured to the point of fully accommodating the requirements of traditional financial systems. This technological leap, which harmonizes regulation and innovation, is expected to serve as a decisive turning point for XRP to establish itself not merely as a payment solution but as a core infrastructure for global institutional finance. As global banks begin to enter the digital asset market in earnest through this feature, the landscape of the cryptocurrency ecosystem is anticipated to undergo fundamental changes.
Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses resulting from its use. The content should be interpreted for informational purposes only.