XRP Ledger Just Flipped the Switch

The XRP Ledger (XRPL) has entered a new era, transforming the way regulated institutions engage with decentralized finance. As blockchain adoption accelerates, banks and financial firms increasingly demand secure, compliant platforms to transact with tokenized assets.

XRPL’s latest upgrades position it as a pioneering settlement layer capable of supporting high-value, regulated transactions without sacrificing speed or transparency.

Crypto commentator Zach Rector highlighted this milestone on X, reporting that the XRPL officially activated the Permissioned DEX amendment (XLS-81) on February 18, 2026. This upgrade introduces “members-only” decentralized exchanges, where only verified institutions can trade.

By enforcing KYC and AML compliance at the protocol level, XRPL enables banks and regulated entities to conduct on-chain transactions with confidence, bridging the gap between institutional requirements and blockchain efficiency.

Permissioned Trading: Private, Secure, and Compliant

The Permissioned DEX allows the creation of gated trading venues, restricting participation to verified members. This design is crucial for institutions that need to manage exposure while interacting with tokenized securities, regulated stablecoins like RLUSD, and other sensitive assets.

By maintaining transactions on-chain, XRPL eliminates reliance on off-chain systems while providing transparency and auditability. Traders and asset managers can now settle sensitive transactions at high speed, using XRP as the bridge asset, without compromising compliance.

Built-in Compliance: KYC and AML at the Protocol Level

XLS-81 integrates seamlessly with earlier XRPL advancements, including Permissioned Domains (XLS-80) and the Credentials system. These tools allow the ledger to enforce KYC and AML requirements directly, removing ambiguity about institutional participation.

Firms can manage trading activity, approve participants, and maintain regulatory oversight without relying on third-party intermediaries. This approach redefines what it means to conduct decentralized finance in a fully compliant manner.

Expanded Escrow and Institutional Settlement

The Permissioned DEX follows the February 12 launch of the Token Escrow amendment (XLS-85), which extended escrow functionality to all tokenized assets and stablecoins. Combined, these updates empower XRPL to act as a complete institutional settlement layer, supporting both custody and compliant trading.

Tokenized real-world assets and regulated financial products can now operate natively on-chain, opening a new frontier for institutional DeFi adoption.

Implications for XRP’s Institutional Narrative

These upgrades mark a structural shift for XRP and the XRPL ecosystem. By enabling secure, compliant, and private trading, the ledger positions itself as a central hub for regulated DeFi activity.

Analysts see this as a milestone in institutional adoption, signaling that XRP is evolving from a payment network into a robust platform for tokenized financial innovation. With the Permissioned DEX live, XRPL has effectively “flipped the switch,” setting the stage for a new chapter in blockchain-based institutional finance.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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