Ripple Removes Final Barrier Stopping Banks From Using XRP Ledger. Here’s the Latest

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For years, the XRP Ledger (XRPL) stood ready as one of the fastest and most scalable blockchains, yet banks rarely used it for on-chain settlement. Ripple boasts over 300 financial partnerships worldwide, but transaction volumes never matched the network’s potential. Observers often asked: Why hasn’t this infrastructure translated into meaningful institutional flows?

Crypto journalist Diana clarified this in a recent X post, citing former Ripple CTO and Board Member David Schwartz. Schwartz explained that banks avoided settling directly on-chain, not due to technical limitations but because they couldn’t be certain who provided liquidity or if counterparties met compliance requirements. With these obstacles removed, the XRPL now opens fully to regulated, institutional participation.

Permissioned Domains Unlock Compliant Liquidity

Ripple has activated Permissioned Domains on the XRPL, creating controlled environments where banks and verified institutions can transact securely. This infrastructure ensures that every participant meets regulatory standards while providing access to reliable liquidity—a problem that previously blocked large-scale adoption.

The next milestone is the Permissioned DEX, set to go live on February 18. This platform will allow only verified participants to trade within institution-only liquidity pools, enabling billions in on-chain flows for the first time. Together, Permissioned Domains and the Permissioned DEX bridge the gap between Ripple’s partnerships and real-world, compliant on-chain activity.

Transforming Bank Adoption and Market Infrastructure

Banks now gain the ability to leverage XRPL’s speed, low fees, and programmability without regulatory or counterparty risk. Cross-border liquidity management becomes faster, cheaper, and more transparent than traditional correspondent banking. Institutions can deploy liquidity efficiently, settle in real-time, and maintain compliance, effectively transforming treasury and operational workflows.

The XRPL’s enhanced architecture also positions XRP as a core tool for institutional liquidity, not just a settlement token. By isolating activity to verified pools, Ripple mitigates risk while fostering deeper engagement from banks and financial intermediaries.

A Turning Point for XRPL

With these advancements, the XRP Ledger finally aligns technical capability with institutional trust. The launch of Permissioned Domains and the upcoming Permissioned DEX could mark the start of a dramatic uptick in on-chain activity, turning Ripple’s partnerships into active participants.

For investors, regulators, and banks, the message is clear: the XRPL is now fully ready to handle large-scale, compliant, and secure institutional transactions—unlocking the long-anticipated liquidity that has eluded the network for years.

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