Ripple Director Explains How the Upcoming XLS-81 Could Bring Institutional Liquidity to XRP

A Senior Ripple Director recently explained how the upcoming XLS-81 amendment could bring institutional liquidity to the XRP ecosystem.

The XRP Ledger (XRPL) community has approved Permissioned DEX (XLS-81), just one week after activating Permissioned Domains (XLS-80). Validators have already backed the amendment, and the network is set to enable it in six days. This follows the earlier rollout of Credentials (XLS-70), which went live in September 2025.

Amid the anticipation, Antonio Kaplan, Ripple’s Senior Director of Engineering, recently shared how this new feature could bring institutional liquidity into the XRP ecosystem. In a blog post, Kaplan explained that XLS-81 gives regulated financial institutions a way to access on-ledger liquidity without compromising on compliance.

Key Points

• The XRPL community has begun with efforts to bring institutional liquidity to the XRP ecosystem.
• The rollout began with Credentials (XLS-70) in September 2025 and continued with Permissioned Domains (XLS-80), activated on Feb. 4.
• Building on this, the community has approved Permissioned DEX (XLS-81), set to go live in six days.
• The feature will enable both open and permissioned markets on the same ledger and allow institutions to access shared liquidity while the open DEX continues to function as usual.
• This shared liquidity model supports atomic settlement and reduces reliance on pre-funded nostro and vostro accounts.
• Ripple plans to use this structure to route asset conversions for cross-border payments, B2B transfers, and RLUSD-funded corridors through the Permissioned DEX.

Why Permissioned DEX Matters

In his blog post, Kaplan pointed out that XRPL’s built-in DEX has handled trades efficiently for over a decade. Over time, the network added tools such as Automated Market Makers (AMMs) and Multi-Purpose Tokens (MPTs).

However, with XLS-81, XRPL adds a permissioned layer to its DEX. Kaplan explained that this will allow regulated institutions to trade on XRPL while meeting strict compliance standards. Institutions can now use a system that runs on the same ledger as the open market instead of building separate private blockchains.

He clarified that the open DEX would continue operating exactly as it does today. Anyone can still place and fill offers. However, the new feature simply gives institutions and developers the option to create order books that demand verified credentials.

Kaplan stressed that most regulated institutions cannot freely handle open systems unless they know who stands on the other side of a trade. Essentially, XLS-81 directly addresses this concern.

A Hybrid System That Connects Open and Regulated Markets

Kaplan called XLS-81 the first system to combine permissioned and permissionless markets at protocol. He noted that earlier attempts at institutional DeFi did not yield results because they separated capital into closed pools. According to him, those “walled gardens” lacked deep liquidity and produced weak pricing.

Permissioned DEX avoids this problem by building regulated order books into the existing XRPL DEX. As both permissioned and open markets operate on the same ledger, traders can move between them easily. Kaplan said this creates a shared liquidity engine instead of splitting liquidity across disconnected platforms.

He added that institutions will gain access to deep, shared pools of liquidity without scattering capital across multiple venues. The unified ledger also supports near-instant settlement across payment corridors. At the same time, issuers can enforce jurisdiction-specific rules and Know Your Customer (KYC) requirements directly at protocol.

How XLS-70, XLS-80, and XLS-81 Work Together

Kaplan compared the system to international travel to explain how the amendments work together. He called Credentials (XLS-70), enabled in September 2025, a digital passport. Notably, trusted authorities will issue these credentials to allow participants prove identity or compliance status on-ledger without exposing private data.

Moving on, he then highlighted Permissioned Domains (XLS-80), which went live on Feb. 4. This feature allows institutions to define which credentials participants must hold before accessing certain liquidity pools, similar to how countries set visa requirements.

Finally, he called Permissioned DEX (XLS-81) the transportation network. Specifically, it introduces native order books that accept trades only from verified participants. As these order books run directly on XRPL, transactions will settle instantly and follow built-in compliance rules

With XLS-81 scheduled to activate in six days, all three amendments will work together to support institutional-grade payments and settlement.

Real-World Use Cases and Liquidity Growth

Meanwhile, Kaplan highlighted foreign exchange as one of the main use cases. Notably, institutions can execute on-chain FX and settlement using shared liquidity while achieving instant local payout. He also said corporates can use the system for B2B and treasury payments, converting stablecoins and fiat-backed assets across regions.

Moreover, Stablecoin issuers could also see stronger liquidity and wider adoption through permissioned markets. When more regulated flows move onto the XRPL, they will add depth to both open and permissioned order books.

Further, Kaplan noted that institutions no longer need to pre-fund accounts in multiple corridors through traditional nostro and vostro arrangements. Instead, they can tap shared liquidity on XRPL and complete atomic settlement. This will reduce settlement delays, lower counterparty risk, and provide transparent FX pricing.

Ripple’s Plans for Permissioned DEX

Kaplan said Ripple plans to use Permissioned DEX as an on-ledger asset conversion mechanism within its payment and treasury workflows. Ripple intends to route the conversion step of cross-border payments, B2B transfers, and stablecoin-based settlements through permissioned order books.

Only verified liquidity providers will participate in those order books. Depending on pricing and liquidity, transactions may convert directly between two assets or move through intermediate pairs before settling atomically on XRPL.