Verified Users Only: XRP Ledger Adds Permissioned Domains

XRP Ledger has launched Permissioned Domains feature (XLS-80) on its XRPL mainnet, the first domain to be created on the mainnet. The feature allows banks, exchanges, and other institutions to operate in controlled areas of the public ledger where only approved accounts can join.

The upgrade went live today, after more than 80% of validators voted yes. With this, big companies can trade safely as long as they follow proper identity checks to take part. This includes Know Your Customer (KYC) and Anti-Money Laundering (AML).

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What are Permissioned Domains?

The Permissioned Domains are built on the earlier Credentials upgrade (XLS-70), which checks and stores identity information for users. A domain owner can allow up to ten approved issuer pairs to trade or move tokens.

Over time, more rules can be added so the system matches local laws in different regions. In an X post on Wednesday, Vet, an XRP Ledger validator, noted that the activation of Permissioned Domains completes two out of three compliance blocks needed for institutions to use decentralized exchanges (DEX) on the XRPL. The last block, called Permissioned DEX, is still waiting to go live.

Krippenreiter, an XRP community member, said, “One piece of the puzzle is still missing, which is the permissioned DEX,” noting that the upgrade is part of the plan to make the ledger more enterprise-friendly. 

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The Permissioned DEX will extend the XRPL’s built-in DEX to a controlled environment, requiring verified credentials to create or fill orders. It recently reached 82.35% consensus with 28 yes votes. Vet shared that if the amendment goes live within two weeks, institutions will be able to trade on a fully compliance-enabled DEX.

Upcoming features coming this month

Two other upgrades are expected in February: 

• Token Escrow amendment: Extends escrow features to fungible and multi-purpose tokens, allowing them to be held securely (Countdown: 8 days, 8 hours).
• Permissioned DEX: Enables controlled trading on XRPL (Countdown: 13 days, 22 hours).

Ripple works with over 300 partners, many of whom need safe and legal ways to use the ledger. Permissioned Domains let them use the built-in DEX safely without a private network.

Ripple CTO David Schwartz said this update helps “remove barriers for big players,” especially banks, so they can trade on-chain while controlling who joins their pools. The ledger stays public, but parts now follow stricter rules, giving institutions control while keeping speed and low fees.

When the Permissioned DEX goes live, regulated trading on XRPL will be easier, allowing companies to swap assets while following local laws. This update is one more step in making the XRP Ledger work for both normal users and big businesses.

Update on Token Escrow

The feature launch follows the XRP Ledger Token Escrow amendment, which entered its activation phase after it reached 82.35% support from validators. The feature lets users lock many types of tokens in an escrow. This includes XRP, stablecoins like RLUSD, project tokens, memecoins, and real-world assets tokens.

The tokens can be held in time-based or condition-based escrow without any third party. According to a previous report, the amendment also requires special flags for Trustline tokens and multi-purpose tokens to ensure security and issue control. The escrow is expected to be activated fully by February 12, with a live countdown already under two weeks remaining. 

Broader context

In short, Permissioned Domains make the XRP Ledger more usable for banks and institutional firms. Earlier, institutions had concerns about the rules and risks when trading on public blockchains. Now, they can work on the ledger while following specific rules.

This also opens the way for tokenized assets, as well as lending and regulated trading. With this, XRPL stays public but offers extra security, making it easier for traditional finance to join without slowing down transactions or paying high fees.

Also Read: Bank of America Adds XRP Exposure With 13,000 Shares in ETF