TL;DR
- Ripple will update the XRP Ledger with compliance tools, liquidity improvements, and greater interoperability with other blockchains.
- A peer-to-peer lending system and an Ethereum Virtual Machine (EVM)-compatible sidechain will be integrated.
- New features will include decentralized identity (DID), price oracles, and an Automated Market Mechanism (AMM) to optimize operations.
Ripple has announced a series of updates for the XRP Ledger (XRPL) aimed at strengthening its infrastructure and expanding its appeal to financial institutions. Among the planned changes, new compliance tools, liquidity improvements, and increased interoperability with other blockchain ecosystems stand out.
One of the most important developments is the implementation of flexible tokens, designed to represent digital assets with additional information that facilitates their use in regulated financial environments. Along with this, XRPL will integrate a peer-to-peer lending system, allowing different companies to obtain financing directly on the network.
The platform will also incorporate permission settings that will enable rules about who can interact with certain assets or functions. This adjustment aims to offer a higher level of security and privacy, while also facilitating regulatory compliance in sectors that require strict controls.
Ripple Works on Interoperability and Efficiency
Another crucial update is the launch of an Ethereum Virtual Machine (EVM)-compatible sidechain, scheduled for the second quarter of 2025. This integration will allow Ethereum developers to deploy smart contracts on XRPL, increasing the flexibility and adoption of the ecosystem.
In terms of decentralization and automation, Ripple is working to improve the decentralized market on XRPL with a new Automated Market Mechanism (AMM). Unlike traditional AMMs, this one combines with its centralized order book to optimize trade execution and minimize slippage losses.
Decentralized Identity
On another note, decentralized identity (DID) is already available on XRPL, enabling users and institutions to establish verifiable identities without relying on third parties. In the future, this functionality will be combined with digital credentials to enhance access control to tokenized financial products and regulated trading platforms.
To improve the reliability of operations on the network, Ripple has incorporated price oracles into XRPL, allowing the retrieval of external market data without relying on additional layers. This feature is crucial for the proper valuation of tokenized assets and the execution of arbitrage strategies.
Oracles, Lending, and Extensions
Among the upcoming innovations is a new multi-purpose token standard that will facilitate the representation of traditional assets like bonds and stocks on the blockchain. Additionally, an institutional lending protocol with options for unsecured credit and advanced risk management mechanisms will be implemented.
Ripple also plans to introduce extensions that will allow for the addition of custom logic to existing contracts without affecting the network’s efficiency. Meanwhile, the new EVM sidechain will attract developers requiring compatibility with Ethereum tools. With these updates, Ripple seeks to create a more secure, programmable, and efficient environment for financial institutions
