Ripple CTO Explains Why XRPL DEX Isn’t Yet Used for Payments

Ripple’s Chief Technology Officer, David Schwartz, has explained why the company is not using the XRP Ledger’s decentralized exchange (XRPL DEX) for payment settlements. In a recent post on X, Schwartz addressed a user’s concerns about the DEX’s low activity, despite Ripple’s numerous partnerships in the finance sector.

Ripple to Create Permissioned Features

Schwartz says that the main challenge of using the XRP Ledger DEX for payments is the regulatory risks that Ripple and its partners face. 

To tackle these issues, he pointed out ongoing efforts to create permissioned features. This tool, called permissioned domains, could help institutions find reliable liquidity providers. This will allow for safer use of on-chain payment systems.

Notably, the XRP Ledger DEX is one of the first decentralized exchanges, allowing people to trade assets directly without intermediaries. However, many large companies are hesitant to use it because they worry about breaking financial rules by engaging with open protocols.

Ripple is trying to balance innovation with regulatory compliance, as it helps the company meet the needs of institutional clients and everyday users.

USDC Lands on XRPL

Despite the DEX issues, the XRP Ledger has been a key player in the blockchain world. 

Last month, Circle officially launched its stablecoin, USD Coin (USDC), on the XRPL mainnet. With the launch, Circle takes advantage of XRPL’s fast transaction speeds and strong security. Intriguing, XRPL is now the 22nd blockchain to support USDC directly.

Meanwhile, Circle is not the only company making moves on the open-source network. Other projects also join XRPL, adding more value and use cases to the network. In January, Ondo Finance launched its tokenized money market fund, OUSG, on XRPL.

These new developments are expected to boost activity on XRPL, especially after a recent report showed a sharp slowdown on the platform.

XRP Ledger: A Growing Hub For Digital Finance

Since its launch in 2012, the XRPL has processed over 3.3 billion transactions and is supported by a global community. 

This includes the XRPL Foundations, XRPL Labs, XRP Ledger Commons, and Ripple. Recall that the XRPL integrated a new feature that facilitates the seamless execution of multiple transactions in a single bundled operation.

Adding USDC and other recent developments shows that XRP Ledger continues to evolve. It is quickly becoming a strong platform for building the future of digital finance.