Ripple Expands XRP Ledger with Permissioned DEX for Large Financial Institutions
Ripple has just opened a new era for the XRP Ledger (XRPL) with the launch of Permissioned Decentralized Exchange (DEX) – a decentralized exchange with authority, dedicated to regulated financial institutions. This is a breakthrough to address the significant challenge of applying cryptocurrency within the traditional financial system: how large organizations can participate in DeFi while ensuring compliance with regulatory requirements.
SBI Group CEO, Yoshitaka Kitao emphasized on social network X:
"Introducing Permissioned DEX on XRP Ledger: Unlocking DeFi access for investment institutions."
What Makes Permissioned DEX Different?
Unlike traditional DEX systems that are open to all users, Ripple's Permissioned DEX requires approval to participate in transactions. Organizations are added to the allowlist and can only trade within the scope of a group with the same permissions, also known as a "permissioned domain."
The special point is that even though access is controlled, Permissioned DEX still supports permissionless assets like XRP, stablecoins, and wrapped tokens. This helps maintain a high level of convenience in interacting with diverse cryptocurrency assets.
Each Permissioned DEX operates independently on the XRPL, capable of supporting thousands of different trading pairs. This architecture facilitates financial institutions to access decentralized technology while upholding stringent legal compliance standards.
Ripple Targets Institutions with Permissioned DEX
Ripple asserts that this project is key to unlocking the potential of practical DeFi usage, alongside scalability and compliance capabilities. According to the official announcement, organizations can now "trade or transfer value on the XRPL Decentralized Exchange without sacrificing compliance, scalability, or decentralization issues."
Notable use cases that Ripple targets include:
Currency exchange transactions (FX swaps) between stablecoins and fiat
Cross-border B2B payments
Payroll and employment contract payments
Centralized corporate treasury management
The Importance of Permissioned DEX in Cryptocurrency
At first, people may think this is a bit dry, but in reality, traditional finance's hesitance towards DeFi has mainly stemmed from compliance-related risks. Ripple's Permissioned DEX is a convincing answer, opening a trading space that is both familiar and fully leverages the advantages of decentralized networks.
Moreover, thanks to being built on the XRP Ledger infrastructure, transactions on the permissioned DEX incur very low costs, fast payment speeds, and do not rely on any intermediaries. This is a factor that creates convenience for large financial institutions ready to step into the DeFi space – a field that has passed the experimental phase and is maturing.
Ripple clearly aims to be a pioneer leading the DeFi revolution for institutions. This is a story worth following for anyone interested in identifying the future of cryptocurrency in the global financial ecosystem.
Source: https://tintucbitcoin.com/dex-phep-xrpl-ra-mat-5-tinh-nang/
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