The XRP Ledger just flipped the switch on institutional DeFi. The Permissioned DEX amendment went live today February 18th at 10:58 UTC, creating programmable on-chain trading venues where only approved participants can place and accept orders.
This is not open finance. This is compliant finance. And that’s exactly the point.
Happy Birthday Permissioned DEX 🎂
— Antonio Kaplan (@antoniokaplan) February 18, 2026
This is the way:
• Permissioned Domains
• On-ledger Credentials
• Native DEX liquidity
pDEX + Domains + Credentials = trusted decentralized FX for institutions.
Let's go! https://t.co/Jr1wNMvvLi
The Upgrade
XLS-81, known as the Permissioned DEX amendment, passed validator consensus with 82.35% approval. The upgrade allows the creation of credential-gated order books inside XRPL’s native DEX. Think of it as a members-only marketplace built directly into the protocol layer.
A permissioned domain can now restrict who is allowed to place offers and who is allowed to accept them. Participation can be tied to compliance requirements like KYC and AML verification. The trading mechanics remain native to the ledger. The access does not.
How It Works
The Permissioned DEX builds on two prerequisites that went live earlier this month:
- Permissioned Domains (XLS-80): Creates regulated environments where only users with verified credentials can participate
- Credentials: Verifiable attestations of identity or compliance status
Together, these primitives shift compliance checks to a reusable on-chain layer. Rather than every market operator building a separate private venue, XRPL allows the “who is allowed to trade here?” rule to be embedded at the protocol level.
What This Enables
- Secondary markets for tokenized assets with full AML and KYC controls
- Stablecoin FX rails where counterparties must meet domain requirements
- Regulated trading venues for tokenized securities, funds, and treasuries
- Compliant on-chain settlement for banks and broker-dealers
The timing is not accidental. Ripple partnered with Aviva Investors for tokenized fund products, and Societe Generale Forge deployed EUR CoinVertible on XRPL today.
The assets are arriving. Now the trading infrastructure to support them is live.
The EUR CoinVertible is now live on the XRP Ledger (XRPL)!
— Societe Generale Forge (@SG_Forge) February 18, 2026
After @ethereum and @solana, this new deployment reinforces our commitment to delivering compliant crypto‑assets through a multi‑chain approach.
The aim?
✅Enhanced scalability and speed thanks to XRPL’s… pic.twitter.com/jiAl7ypH8S
The Limitations
- Not compatible with AMMs: Permissioned orders cannot be filled by automated market makers
- Separate liquidity pools: Each permissioned DEX is independent
- Credential governance risk: Security depends on domain owners and credential issuers
What This Means
XRPL is building infrastructure for institutions first. The network is leaning into gated markets rather than fully open DeFi. The bet: regulated finance needs the privacy and security of traditional markets with the efficiency gains of DLT.
The infrastructure is ready. Wall Street’s move.
*Disclaimer: News content provided by Genfinity is intended solely for informational purposes. While we strive to deliver accurate and up-to-date information, we do not offer financial or legal advice of any kind. Readers are encouraged to conduct their own research and consult with qualified professionals before making any financial or legal decisions. Genfinity disclaims any responsibility for actions taken based on the information presented in our articles. Our commitment is to share knowledge, foster discussion, and contribute to a better understanding of the topics covered in our articles. We advise our readers to exercise caution and diligence when seeking information or making decisions based on the content we provide.
