[DigitalToday reporter Chi-gyu Hwang] XRP Ledger activated a new upgrade for regulated financial institutions and unveiled a membership-based exchange function that can be run directly on-chain, The Block reported on Feb. 18 local time.
The update is called "XLS-81" or a Permissioned DEX. It provides a function that converts XRP Ledger's existing decentralised exchange into a controlled format. Unlike the existing open order book, only designated administrators can determine who participates in trading. It provides a "members-only" exchange environment that complies with KYC and AML rules. The trading mechanism is recorded on the ledger in the same way as before, but access is limited to approved participants.
The design targets financial institutions that want blockchain-based liquidity while also seeking control over counterparties. XRP Ledger is a public blockchain released in 2012. It is closely associated with Ripple and includes payments, token issuance and decentralised exchange functions in its base layer.
Chi-gyu Hwang
delight@d-today.co.kr