Ripple’s Last Piece Of The Puzzle: How Insitutions Will Deploy Liquidity To XRP Ledger | Bitcoinist.com

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Crypto pundit Stern Drew has stated that permissioned domains were the last piece Ripple needed for institutions to deploy liquidity on the XRP Ledger (XRPL). This came as he alluded to an earlier statement by the firm’s former Chief Technology Officer (CTO), David Schwartz, in which he touched on these permissioned domains and how they will boost the XRPL

Pundit Reveals Ripple’s Last Move To Onboard Institutions On XRP Ledger

In an X post, Stern Drew remarked that permissioned domains with a zk-Credential system were the last piece of the puzzle institutions needed to deploy trillions in capital securely on-chain. He added that Ripple’s path to enable this feature is now clear, thanks to regulatory clarity, with the SEC lawsuit now in the past

Related Reading: These Ripple Patents Show Why XRP Can’t Be Copied Or ReplicatedThe crypto pundit highlighted an X post from the company’s former CTO, explaining how permissioned domains will help boost institutional adoption on the network. Back then, Schwartz admitted that institutions historically preferred to use crypto off-chain rather than on-chain, but that they were close to changing that

The former Ripple CTO further noted how even Ripple could not use the XRP Ledger DEX for payments because of concerns that an illegal actor could provide liquidity. He concluded that features such as permissioned domains will address this. Ripple’s developer arm, RippleX, also recently described permissioned domains as a “game changer.”

Permissioned domains will enable the XRP Ledger to implement controls that ensure institutions can transact in a compliant environment, despite operating on a public blockchain. As such, these institutions will no longer have to worry about transacting with bad actors, which can bring about legal scrutiny

Permissioned Domains Go Live On Mainnet

In an X post, RippleX announced that permissioned domains are now live on the XRP Ledger mainnet, and that the permissioned DEX has reached validator consensus to activate in two weeks. As such, the complete “permissioning stack” will soon be available to institutions, enabling them to access compliant liquidity pools on the network

Related Reading: Ripple Just Secured Another Major Win In Its Mission For Powering Global Payments With XRPThis permissioning stack includes Credentials, Permissioned Domains, and Permissioned DEX. Credentials enable institutions to verify attestations of identity or compliance status. Furthermore, Ripple’s developer arm explained that Permissioned Domains are controlled environments that define which Credentials are required to participate as a verified issuer. Lastly, the Permissioned DEX is the order book within the native DEX that only accepts trades from accounts that meet domain requirements

Software developer Vincent Van Code predicted that Ripple and their partners will start issuing stablecoins and creating very large liquidity pools once this permissioning stack is implemented. He added that this would mean a global, fast, liquid, cross-border, and cross-currency payment network.

At the time of writing, the XRP price is trading at around $1.44, down over 9% in the last 24 hours, according to data from CoinMarketCap.

XRP trading at $1.43 on the 1D chart | Source: XRPUSDT on Tradingview.comFeatured image from Getty Images, chart from Tradingview.com Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.