Ripple Unveils Institutional DeFi Framework on XRP Ledger

Ripple has announced the establishment of institutional-level decentralized finance (DeFi) infrastructure built on the XRP Ledger (XRPL).

At the core of this platform is a proprietary decentralized exchange (DEX) operating on XRPL, which will incorporate both existing solutions and those currently in development.

One of the features offered is an automated market maker (AMM) based on the XLS-30 standard. This mechanism integrates directly with the centralized order book of the DEX. Notably, it includes the ability to withdraw funds in case of potential account access issues or malicious activities. This feature is disabled by default and does not apply to the XRP token.

The developers highlighted several key use cases for the AMM, including:

With the implementation of XLS-30, the XRPL now supports the creation and management of decentralized identifiers (DIDs), providing increased functionality.

Additionally, XRPL features its own oracles, designed to seamlessly transfer off-chain data into the protocol. Currently, price feeds from both cryptocurrency and traditional markets are supplied by external providers such as Band Protocol and DIA.

«This is crucial for institutions, especially since much of the necessary data still resides in outdated Web2 systems,» Ripple emphasized.

Looking forward, the developers plan to:

It’s worth noting that in January, Mark Yusko, CEO of Morgan Creek, pointed out discussions regarding the integration of XRP into the U.S. banking system.