XRP Ledger Activates AMMClawback to Strengthen AMM Pool Compliance

XRPL Labs COO Highlights Importance of Batch Amendment for Ecosystem Growth

  • AMMClawback gives issuers control over frozen assets in XRP Ledger’s AMM pools.
  • RLUSD can now join AMM pools, improving liquidity and trading opportunities on XRPL.
  • Stricter deposit rules enhance compliance and security for XRP Ledger liquidity providers.

The XRP Ledger has activated the AMMClawback amendment to improve compliance in Automated Market Maker (AMM) pools. The update received approval from 91.43% of validators, allowing token issuers to control assets under specific conditions. This change aims to prevent unauthorized transactions and align the XRP Ledger with regulatory standards.  

New Liquidity Opportunities for XRP and RLUSD  

The amendment now allows the creation of an XRP/RLUSD AMM pool, improving liquidity options for both assets. RLUSD, Ripple’s stablecoin launched in December 2024, previously faced restrictions due to its built-in clawback function. This update removes that limitation, allowing RLUSD holders to provide liquidity and trade easily.  

Since its launch, RLUSD has gained support from major exchanges, increasing its adoption. The recent listing on Margex has expanded its market presence, attracting more traders. Investors now have better access to RLUSD, which may strengthen its role in decentralized finance.  

Stricter AMM Pool Rules for Wallets and Issuers

The amendment introduces stricter rules for liquidity providers and token issuers. If a paired token is frozen, wallets cannot deposit single-sided or double-sided assets into an AMM pool. Unauthorized accounts can only deposit once if the paired asset is allowed.  

Token issuers must now use the AMMClawback function instead of standard clawback transactions. This structured approach prevents disruptions while maintaining compliance. The new process ensures transparency and protects investors in the XRP Ledger ecosystem.  

Institutional Interest in Tokenized Assets Grows 

This development follows Ondo Finance’s push to expand tokenized assets on the XRP Ledger. The deployment of Ondo US Government Stablecoin(OUSG) on the network aims to improve institutional liquidity and compliance. The integration of OUSG may attract more financial institutions to XRPL.  

Following this announcement, ONDO and XRP prices increased, reflecting strong market confidence. Many investors see these upgrades as steps toward a more secure and regulated blockchain environment. The XRP Ledger community expects further growth in decentralized liquidity solutions.


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