Ripple has introduced a significant upgrade to the XRP Ledger (XRPL) with the activation of the AMMClawback Amendment on the mainnet. This new feature enhances the functionality of the Automated Market Maker (AMM) by allowing issuers of tokens with the Clawback function to reclaim assets under specific conditions. The move strengthens compliance measures and improves security, particularly for regulatory concerns or unauthorized transfers.


David Schwartz, Ripple’s CTO, expressed excitement over the feature’s launch, highlighting its importance for expanding the use cases of the XRP ecosystem. With the amendment now live, token issuers can exert greater control over their assets while still benefiting from the decentralized nature of XRPL.

One of the most immediate beneficiaries of this update is Ripple USD (RLUSD), Ripple’s recently launched stablecoin. Before the amendment, RLUSD could not be utilized in AMM pools, limiting its liquidity options. Now, the stablecoin can actively participate in XRPL’s decentralized exchanges (DEXes), opening up new liquidity and trading opportunities.

The XRP community has responded positively to the update, recognizing its role in expanding XRPL’s capabilities within decentralized finance (DeFi). Many believe this marks another step forward in positioning the XRP Ledger as a leading platform for DeFi applications. With improved security, regulatory safeguards, and enhanced liquidity, this upgrade could drive further adoption of RLUSD and strengthen XRPL’s role in the evolving crypto landscape.

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