XRP Ledger Enhancements for Institutional Use

Fundamental investors tracking XRP have more reason to cheer as a planned set of features aims to make the XRP Ledger, the network underpinning that token, even more appealing for institutional usage.

XRP prices are up 2.2% in the past 24 hours, outperforming a 1.1% decline in bitcoin following Tuesday’s market carnage.

Ripple said in a Tuesday update that the XRP Ledger network will build out more compliance functions and expanded lending, among other features, to let institutions meet regulatory requirements and offer new lending options.

Key Features

• Flexible Tokens: Digital items representing various assets like bonds or collectibles, designed with added details for usability.
• Lending System: A new tool allowing companies to borrow and lend directly on the XRP Ledger without the need for banks.
• EVM Sidechain: Launching in Q2 2025, this sidechain will attract more developers and support additional protocols not feasible on the current XRPL.
• Permissioned Settings: Companies can establish rules for feature access, enhancing privacy and compliance.

The updates complement features already live on the network, such as the clawback mechanism, which enables issuers to reclaim tokens linked to illicit activities.

Conclusion

The enhancements to the XRP Ledger are set to make it a more attractive option for institutions, potentially leading to increased adoption and usage of XRP in various financial applications.