Ripple Labs designs a strategic path to build a secure DeFi setup on the XRP Ledger network for institutional users. They published details about their campaign to make XRP Ledger work well for banking institutions that require safe and regulated platforms.
The new plan presents important financial applications consisting of a permissioned DEX platform, lending protocol for DeFi contracts, and MPT token standard. The automated smart contracts on XRP Ledger will check for compliance regulations through its decentralized identifier system.
Ripple continues to enhance its existing system features including price oracle access and AMMs. Technical upgrades have not created substantial growth in XRP Ledger’s total value locked which stands at $80 million while Ethereum leads the industry with $50 billion assets.
Regulatory Shift Boosts Ripple
The company released its news following a strong growth in XRP value which increased over 300% starting from the day Donald Trump won the US presidential election on Nov. 5. CoinMarketCap shows XRP reached a $128 billion dollar market capitalization as of Feb. 26.
The XRP Ledger system needs Ripple’s core developer team to create new products and avoid outside contracts like Ethereum serves. During January 2024 Brad Garlinghouse announced the DEX service’s important role in Ripple as the platform completed $1 billion transactions since its start in 2024.
XRP Ledger entered the blockchain industry as one of its earliest digital networks back in 2012. Ripple Labs relies on RWA tokenization platforms to expand its business operations next.
Ripple Targets Institutional Expansion
The changing American financial regulations could lead to better conditions for Ripple. Trump vowed to make the US the top crypto nation through his leadership and possibly added Ripple Labs-friendly executive staff to top financial oversight positions such as the SEC. Ripple employees believe the SEC’s legal battle may stop completely when the new administration takes power.
Expert analysts at JPMorgan believe exchange-traded funds (ETFs) backed by XRP would gain strong investor support based on recent U.S. asset manager applications.
On February 25 the SEC ended its examination of Uniswap, the main DEX showing signs of evolving regulatory position during Trump’s presidency. Some investors now speculate that XRP will perform well like Ripple because of this recent SEC decision.
Ripple believes it can win more financial institutions to the XRP Ledger network by improving its institutional DeFi strategy based on compliance tools.
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