Ripple Unveils Institutional DeFi Infrastructure on XRP Ledger

Ripple has announced the development of institutional-grade decentralized finance infrastructure based on the XRP Ledger (XRPL).

For institutional DeFi to scale, it needs compliance-ready, interoperable infrastructure: https://t.co/cOBE583aT0

The XRP Ledger delivers with:

➡️ AMM trading & onchain price oracles
➡️ Tokenized real-world assets (RWAs)
➡️ Decentralized identity (DID) for secure transactions…

— RippleX (@RippleXDev) February 25, 2025

The platform is built on its own decentralized exchange (DEX) on XRPL, incorporating both existing and newly developed solutions.

One of the features is an automated market maker (AMM) based on the XLS-30 standard. This mechanism is directly integrated with the centralized order book on the DEX. A notable feature is the ability to withdraw funds in case of a threat to account access or malicious actions. This function is disabled by default and does not apply to the XRP token.

Developers have highlighted the main use cases for the AMM as:

• providing institutional liquidity;
• tokenized trading of RWAs;
• arbitrage and cross-chain swaps.

With the implementation of XLS-30, XRPL now supports the creation and management of decentralized identifiers (DID). This feature ensures:

• compliance with KYC/AML principles while guaranteeing confidentiality;
• setting and dividing access by permission.

XRPL also integrates its own oracles with a built-in mechanism for transferring off-chain data into the protocol. Currently, price feeds from both cryptocurrency and traditional markets are provided by third-party providers like Band Protocol and DIA.

“This is important for institutions, considering that much of the required data still resides in legacy Web2 systems,” Ripple emphasized.

Looking ahead, developers plan to:

• expand DID functionality with options for Permissioned Domains and Permissioned DEX;
• implement the concept of a “Multi-Purpose Token” (MPT);
• launch a lending protocol for institutions on XRPL.

Back in January, Morgan Creek CEO Mark Yusko noted “talks” about integrating XRP into the U.S. banking system.