Ripple Chief Technology Officer (CTO) David Schwartz has introduced Ripple’s ambitious roadmap for institutional decentralized finance (DeFi) on the XRP Ledger (XRPL) in 2025. Describing it as “pretty great,” Schwartz highlighted its structured direction, covering both existing features and upcoming innovations aimed at institutional adoption.
It’s here – Ripple’s roadmap for institutional DeFi on the XRP Ledger in 2025. As roadmaps go, I (personally) think this one is pretty great – outlining a clear direction with use cases and features (available and to be proposed) of what Ripple will be focused on contributing to… https://t.co/L8WgovxiPJ
— David "JoelKatz" Schwartz (@JoelKatz) February 25, 2025
Strengthening Institutional DeFi Infrastructure
XRPL has long been a leader in decentralized exchange (DEX) capabilities, offering low fees and rapid settlement times. The introduction of automated market makers (AMMs) under the XLS-30 standard further enhances these capabilities by integrating liquidity pools directly into the order book DEX. This innovation improves price execution while mitigating impermanent loss, a major concern for liquidity providers.
Additionally, AMM Clawback functionality ensures compliance by allowing issuers to reclaim funds in specific scenarios. These enhancements strengthen XRPL’s institutional appeal by optimizing liquidity, price discovery, and regulatory adherence.
Real-World Assets and On-Chain Oracles
Tokenization of real-world assets (RWAs), such as treasuries and real estate, is a central focus of Ripple’s roadmap. To ensure accurate market data, XRPL is integrating on-chain price oracles at the protocol level. Providers like Band Protocol and DIA will supply institutional-grade pricing data, facilitating cross-chain interoperability, lending solutions, and risk management for financial institutions.
A New Standard for Tokenization
Traditional tokenization often lacks essential metadata, limiting its utility in regulated markets. Ripple’s XLS-68 Multi-Purpose Token (MPT) standard introduces semi-fungible tokens capable of carrying additional metadata while remaining tradeable. This development supports structured financial assets, including bond maturities and share classes, streamlining institutional adoption.
To meet regulatory requirements, XRPL is advancing identity solutions through the XLS-40 Decentralized Identity (DID) standard. This enables verifiable on-chain identities while preserving privacy. Additionally, XLS-70 introduces credentialing features, allowing institutions to verify identities for permissioned financial services. These improvements enable regulated DEXs, ensuring institutional compliance in decentralized markets.
XRPL’s lending protocol, supported by XLS-65d and XLS-66d, facilitates credit-based markets, including pooled lending and uncollateralized credit via off-chain underwriting. These features integrate with stablecoins and tokenized RWAs, enhancing liquidity management for institutions.
Further advancing XRPL’s programmability, Ripple is introducing “Extensions,” allowing native function enhancements without smart contracts. Additionally, the anticipated XRPL EVM sidechain, set to launch in Q2 2025, will enable Ethereum-based smart contracts to interact seamlessly with XRPL.
Also Read: This New SEC Action Sparks Hope for Ripple’s Appeal Victory
Ripple’s 2025 roadmap cements XRPL as a compliance-ready DeFi platform, driving advancements in tokenization, AMMs, identity solutions, and lending. By focusing on interoperability and regulatory compliance, Ripple aims to position XRPL as the go-to blockchain for institutional DeFi adoption.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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