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    You are at:Home » Hot Topics » News » XRP Ledger activates permissioned DEX for regulated institutions
    XRP Ledger activates Permissioned DEX for regulated institutions and turns XRPL into compliance-ready trading infrastructure.

    XRP Ledger activates permissioned DEX for regulated institutions

    0
    By Editorial Office CVJ.CH on 19. February 2026 News

    On February 18, 2026, the XRP Ledger activated the XLS-81 amendment on mainnet. The upgrade, called "Permissioned DEX," enables regulated banks and brokers to operate closed on-chain trading venues.

    Specifically, designated administrators determine who may place and accept trade offers. This Permissioned DEX is the third major upgrade within just two weeks. Previously, Permissioned Domains (XLS-80) went live on February 4, followed by Token Escrow (XLS-85) on February 12. Together, the three amendments form a coordinated infrastructure package designed to position the XRP Ledger (XRPL) for institutional use cases.

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    How the permissioned DEX works

    Unlike the open order book on the XRP Ledger, the Permissioned DEX operates within closed trading environments. Each Permissioned Domain maintains its own order books and currency pairs. Only participants within the same domain can execute trades. Access can also be tied to KYC and AML requirements.

    Amendment XLS-80 provides the technical foundation. Over 91 percent of XRPL validators approved the upgrade, which went live on February 4. Permissioned Domains function as rule-based, closed environments within the public blockchain. Accounts that meet specific criteria can interact within these domains, while all others remain excluded.

    For banks and brokers, this approach solves a core problem. They can use on-chain trading without abandoning their KYC and sanctions screening obligations. Fully open DeFi markets are simply not viable for most regulated entities.

    Token Escrow expands functionality

    With XLS-85, XRPL expanded the native Escrow function on February 12. The network now supports all Trustline-based tokens and Multi-Purpose Tokens (MPTs) in addition to XRP. Previously, only XRP amounts could be held in escrow. Other projects therefore relied on custom solutions or external tools.

    As a result, stablecoins like RLUSD and tokenized real-world assets can now fit into escrow structures. For Trustline Tokens, issuers must activate the "Allow Trust Line Locking" flag, and for MPTs the "Can Escrow" flag. Use cases range from treasury controls and collateral locks to automated settlements.

    The combination with the Permissioned DEX creates a complete toolkit for regulated tokenized markets. From issuance through conditional release to controlled secondary trading, XRPL now covers the entire value chain.

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    Aviva Investors as first European partner

    Beyond these technical upgrades, Ripple has gained an important new partner in Aviva Investors. On February 11, both companies announced a partnership to tokenize funds on the XRP Ledger. Aviva Investors manages GBP 246 billion in AUM and operates in nine countries. This marks the British asset manager's first tokenization project and Ripple's first partnership with a European asset manager.

    "We believe tokenization can bring many benefits to investors, including improvements in time and cost efficiency." - Jill Barber, Chief Distribution Officer, Aviva Investors

    Both sides plan the collaboration for 2026 and beyond. Aviva Investors joins a broader trend. BlackRock, Franklin Templeton, and Hamilton Lane have already launched tokenized products, with a focus on money market funds, private credit, and real estate.

    "Tokenization is now moving from the experimental phase to large-scale production. The development of tokenized fund structures can bring enormous technological efficiency gains for the investment sector." - Nigel Khakoo, Vice President Trading and Markets, Ripple

    XRPL positions itself against traditional market infrastructure

    The XRP Ledger has been operational since 2012 and has processed over 4 billion transactions. A network of 120 validators operates without energy-intensive mining. Compared to exchanges with central clearing houses and multi-day settlement cycles, XRPL offers near-instant settlement with native liquidity.

    Permissioned Domains combine on-chain efficiency with the access controls that regulated entities need. Still, retail traders are unlikely to notice much of these changes in the short term. The real impact depends on how quickly banks and brokers adopt the new infrastructure. Yet three amendments in 14 days underscore the pace of this strategic realignment.

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    About the author

    Editorial Office CVJ.CH
    Editorial Office CVJ.CH
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    Since 2018, the editorial team at Crypto Valley Journal has been reporting from Zug - the heart of Switzerland’s Crypto Valley - on Bitcoin, cryptocurrency, blockchain, and regulatory developments in digital assets. Behind the publication’s collective editorial voice is a team of writers with backgrounds in financial markets, law, and technology.

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