Ripple has launched a new Permissioned Decentralized Exchange (DEX) on the XRP Ledger, but access is strictly limited. According to a recent update shared by Yoshitaka Kitao, CEO of SBI Group, only verified and authorized financial institutions can participate in trading activities on the platform.
In the Permissioned DEX, compliance controls are added to limit access to specific participants within a system called a Permissioned Domain. Within each domain, a specific DEX exists where accounts have to be on the same allowlist to be able to trade.
In a press release, Ripple affirmed the launch, stating that this structure can be used to meet regulatory demands and hold to the original decentralized properties of the XRP Ledger.
This DEX enables the developer to develop permissioned books of orders for assets such as XRP, Stablecoins, or wrapped assets. However, only accounts approved by the domain’s allowlist can trade on those books.
Each Permissioned DEX is strictly restricted to its scope and incapable of communicating with other types of domains, guaranteeing complete segregation of trading circles.
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Ripple Targets Institutional Use With Segmented DEX Access
The move aims to enable real-world financial applications such as cross-border B2B transactions, stablecoin-to-fiat currency swaps, payroll settlements, and corporate treasury management. These functions are now possible on XRPL under full regulatory oversight and with cost efficiencies intact.
Ripple pointed out that the DEX satisfies institutional control and compliance requirements while maintaining decentralized infrastructure. This will enable financial institutions to start trading immediately without the need for custom backend integrations or developing an entirely new platform.
The Permissioned DEX is not publicly available, as trading is limited to financial entities that meet specific requirements and are allowed to be listed. This process provides a safe environment for enterprise-level transactions.
By restricting access to verified institutions, Ripple will create a trusting and easily scalable environment without compromising on the XRPL’s low-fee, fast-settlement environment.
Marking a significant step, the new launch moves blockchain closer to mainstream finance through a regulated and compliant framework.
The XRP Ledger’s new DEX is purpose-built for institutional use, setting a clear boundary between retail users and verified financial entities. Ripple’s model introduces a scalable, secure option for regulated institutions to explore DeFi within strict compliance standards.
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