XRP Ledger Implements Clawback Feature to Enhance Ripple’s RLUSD Trading
The XRP Ledger has introduced a significant update with the activation of a clawback amendment, following a validator vote where over 90% supported the change. This development allows Ripple’s dollar-pegged stablecoin, RLUSD, to be freely traded and exchanged directly on the XRP Ledger’s decentralized exchange (DEX), thereby increasing its liquidity and expanding trading opportunities within the ecosystem.
The newly implemented clawback feature enables the issuer to reclaim RLUSD tokens from users’ wallets under specific conditions. Typically, this capability is utilized to ensure regulatory compliance, recover assets involved in fraudulent or illegal activities, or rectify instances where tokens are mistakenly sent to unintended addresses. By incorporating this feature, Ripple aims to bolster the security and integrity of its stablecoin transactions.
In addition to facilitating RLUSD trading, the update enhances the regulatory compliance of the XRP Ledger’s Automated Market Maker (AMM) pools. The modification of the “AMMDeposit” transaction type ensures that frozen tokens cannot be deposited into the AMM, thereby maintaining the platform’s adherence to regulatory standards and preventing the circulation of compromised assets.
The XRP Ledger’s DEX, known for its efficiency, allows users to swap tokens seamlessly using liquidity pools instead of traditional order books. Since the introduction of the AMM functionality with amendment XLS-30D in March 2024, the platform has processed over $1 billion in swap volumes. January 2025 has been particularly notable, with the DEX handling more than $400 million in trades, underscoring its growing prominence in the decentralized finance (DeFi) landscape.
Industry experts anticipate that the integration of the clawback feature will not only enhance the operational capabilities of RLUSD but also attract more participants to the XRP Ledger’s DeFi ecosystem. By providing robust regulatory safeguards and improving liquidity options, Ripple continues to strengthen its position in the stablecoin market and the broader blockchain sector.
As the XRP Ledger evolves, these updates reflect Ripple’s commitment to fostering a secure, compliant, and efficient trading environment for its users worldwide.