#XRP Ripple Labs has announced significant upgrades to the XRP Ledger (XRPL), aiming to enhance regulatory compliance and promote institutional adoption of decentralized finance (DeFi).

Through their official blog, #XRPL Insights, Ripple outlined a 2025 roadmap introducing features designed to attract regulated entities. Among the highlights are Decentralized Identities (DIDs), which allow users to create verifiable identities without relying on centralized intermediaries.

According to Ripple, this system “enables privacy-preserving KYC and paves the way for secure and compliant institutional DeFi.”

Another major update is the launch of a permissioned DEX, which restricts participation to users with verified credentials via the new “Credentials” system — a tool that links DIDs to regulatory-compliant attestations.

As outlined in a technical article on http://dev.to, this identity layer aims to build “institutional DeFi that integrates privacy, regulation, and interoperability.” Additionally, the XRPL will incorporate native price oracles and an Automated Market Maker (AMM) to improve data accuracy and operational efficiency.

Complementing this stack are Multi-Purpose Tokens (MPTs), a new class of semi-fungible tokens designed to represent real-world assets such as real estate and government bonds. These upgrades are part of a broader vision to position XRPL as infrastructure for regulated tokenization and institutional DeFi.

As Ripple puts it, “this evolution of the ledger reflects a commitment to innovation aligned with global regulatory standards and integration with traditional finance”