TheDinarian
News • Business • Investing & Finance
Institutional DeFi on the XRP Ledger: What's Live and What's Next
March 01, 2025
post photo preview

Institutional adoption of blockchain-powered finance has accelerated in the past year, with tokenized real-world assets (RWAs)stablecoins, and decentralized liquidity markets as major drivers of growth. Yet, for this transformation to scale, financial institutions need a robust, compliance-focused, and interoperable blockchain infrastructure—one that can support digital assets, seamless cross-border transactions, and institutional-grade decentralized finance (DeFi).

The XRP Ledger (XRPL) meets this challenge head-on, building on its core strengths—a native DEX, low fees, rapid settlement times, and a compliance-friendly architecture—to create an advanced institutional DeFi ecosystem. Several key capabilities are live, with others on their way, which will support the XRPL as a safe, secure, and scalable layer 1 for financial institutions looking to use blockchain in a regulated environment.

What’s Live on the XRP Ledger: Expanding Institutional DeFi Infrastructure

XRPL has made significant strides in enhancing liquidity, improving price transparency, and introducing new compliance tools to better cater to the needs of institutions.

While this blog highlights several of the newest features live on the XRP Ledger, they build upon core functionalities that have been supporting financial use cases for over a decade. The move towards a more automated and integrated system within XRPL’s native Decentralized Exchange (DEX) is designed to facilitate greater institutional participation by ensuring constant liquidity and minimal slippage. XRPL’s Central Limit Order Book (CLOB) has powered decentralized trading since its inception, providing efficient price discovery and deep liquidity across assets

Meanwhile, Payments—one of the ledger’s first native capabilities—continues to facilitate fast, low-cost global transactions, with additional payment primitives like Payment Channels for scalable micropayments, Checks for deferred settlement, and Escrows for conditional transfers. These are just some of the long-standing features that, combined with recent innovations, make XRPL one of the most mature and robust blockchains for institutional DeFi. With over 2.8B transactions having been processed to date, XRPL continues moving from strength to strength.

XRPL’s Automated Market Maker (AMM), built on the XLS-30 standard, introduces protocol-level liquidity for tokenized assets, stablecoins, and real-world assets (RWAs). Unlike traditional AMMs, XRPL’s version integrates directly with its native order book (CLOB)-based DEX, and enables price optimization to determine whether swapping within a liquidity pool, through the order book, or both provides the best rate and executes accordingly. Its continuous auction mechanism mitigates impermanent loss, making liquidity provision more appealing to institutional players. 

Thanks to AMM Clawback, all key tokens, including Ripple USD (RLUSD), can fully leverage the network’s AMM liquidity pools. By enabling issuers to “claw back” funds from a trustline in specific circumstances—like lost account access or malicious activity—this amendment satisfies crucial regulatory requirements for fraud prevention and transaction reversals. Clawback remains an optional feature, intentionally disabled by default that can only be enabled for issued assets and never for XRP.

Key Use Cases

  • Institutional Liquidity Provisioning – Funds and market makers can deploy capital in AMM pools to generate yield.

  • Tokenized RWA Trading – Previously illiquid assets, such as tokenized treasuries and real estate, can be efficiently traded.

  • Arbitrage & Cross-Chain Swaps – Ensuring pricing accuracy across different DeFi ecosystems.

Decentralized Identity (DID) 

Now that XLS-40 is live, institutions and developers can create and manage decentralized identifiers (DIDs) directly on the Ledger. This feature enables self-sovereign identity, allowing users to establish verifiable identities without relying on centralized intermediaries. 

By leveraging DIDs, institutions can enhance security, privacy, and compliance while maintaining decentralization. This lays the groundwork for permissioned access to financial markets, identity verification for tokenized real-world assets (RWAs), and broader institutional adoption of DeFi.

Key Use Cases

  • Privacy-Preserving KYC & AML Compliance – Institutions can verify identity attributes without exposing sensitive personal data.

  • Permissioned Finance & Access Control – Gate entry to regulated trading venues using onchain credentials.

  • Institutional Onboarding – Streamline identity verification for tokenized securities, RWAs, and lending platforms.

Price Oracles: Bringing Market Data Onchain

Real-time and accurate price feeds are critical for institutional DeFi—especially when dealing with tokenized assets and cross-chain transactions. To meet this need, the XRP Ledger integrates protocol-native oracles, providing a built-in mechanism for bringing off-chain data (like stablecoin rates and real-world asset valuations) onchain. Because these oracles are embedded directly into the XRPL—much like its native AMM—they avoid reliance on separate third-party layers, ensuring more efficient and trustworthy data flows. 

Providers such as Band Protocol and DIA are already live on the XRPL mainnet, delivering robust price feeds that span both crypto and traditional markets. This is essential for institutions, given that much of the data required still resides in legacy Web2 systems.

Key Use Cases

  • Accurate RWA Valuation – Ensuring tokenized assets remain pegged to their real-world counterparts.

  • Cross-Chain Interoperability – Providing price feeds for assets moving across different blockchain networks.

  • Institutional-Grade Risk Management – Enabling more reliable onchain lending and derivatives.

What’s Coming to the XRP Ledger: Expanded Compliance Features, Institutional Lending, and Programmability

XRPL is evolving with new features that bring greater compliance functions, expanded lending, and more ways to build onchain financial products. These changes will enable institutions to meet regulatory requirements, offer new lending options, and give developers more flexibility to build and deploy financial applications.

Building on DID: Permissioned DEX, Credentials & Compliance Innovations

Enhancing the ‘Identity Stack’ in finance tools will enable institutions to build secure, compliant trading venues on XRPL.

Credentials are designed to be a lightweight feature and are additive to the recent Decentralized Identity (DID) standard. The Credentials standard introduces a new ‘Credential’ ledger object along with new transaction types for creating, accepting, and deleting credentials. The XLS-70 spec for Credentials on the XRPL is currently undergoing the amendment voting process as part of the rippled 2.3.0 release.

Ripple Senior Software Engineer, Mayukha Vadari, recently outlined how to consider Credentials as a modular building block to DID. It can be applied to attest to specific criteria (e.g. KYC) pertaining to a user and issued to their DID. This is critical in terms of enabling a smooth onboarding process when accessing products like tokenized RWAs.

Credentials and DID give rise to two additional features, Permissioned Domains and a Permissioned DEX, that help facilitate a flexible, institutional-grade identity system on XRPL.

Permissioned Domains allow entities, such as financial institutions, to establish environments on the XRPL that require specific credentials for access. This setup enables organizations to define membership criteria, such as Know Your Customer (KYC) credentials from trusted issuers, and manage participation within their domain. Importantly, this system preserves user privacy by verifying credential validity without exposing personal information

Building upon this, the Permissioned DEX extends the XRPL’s native DEX to operate within these controlled domains, ensuring that only accounts with valid credentials can create or fill orders. This approach allows institutions to engage in decentralized trading while adhering to regulatory requirements, such as Anti-Money Laundering (AML) and KYC rules, all within a decentralized framework.

While DIDs serve as a foundational “fingerprint” for each user, Credentials provide the identity and compliance layer required for different scenarios. Building on these foundations, Permissioned Domains and Permissioned DEX protocols enforce membership and compliance rules by requiring the appropriate DID-based Credentials, all while preserving the open nature of the XRPL.

Multi-Purpose Token (MPT): A New Standard for Tokenized Assets

Traditional financial instruments such as stocks, bonds, and other securities possess intricate data requirements that can be challenging to represent onchain as fungible tokens. For instance, two bonds may be identical in all regards except their expiry dates, which is a critical detail and makes it inappropriate to present both as equivalent. 

To solve this, the XRPL developer community has introduced Multi-Purpose Tokens (MPTs) which bridge the gap between fungible and non-fungible tokens. They are akin to “semi-fungible” tokens whereby key associated metadata can be attached. This provides them with more flexibility than fungible tokens, while they’re not truly unique such as with NFTs.

Currently undergoing validator voting, MPT introduces a more flexible, efficient, and metadata-rich token standard that allows institutions to tokenize and trade bonds, RWAs, and structured financial products with enhanced functionality.

Key Use Cases

  • Tokenized Bonds – Represent fixed-income assets on XRPL with precise metadata storage.

  • Grade Asset Management – Better compliance features, efficiency, and control over tokenized securities.

XRPL Lending Protocol: Credit-Based DeFi for Institutions 

The XRP Ledger-native lending protocol adds a pivotal dimension to the XRPL’s DeFi capabilities. This proposed amendment will enable crypto-native businesses to integrate lending with Ripple Payments, DEX, RWAs, and stablecoins, using a default RLUSD vault to reduce liquidity fragmentation and AMM for seamless FX swaps. It will also look to streamline asset allocation and fund admin for crypto-native managers with automated returns, real-time valuations, diversified strategies, and compliant execution via RWAs and onchain KYC.

Institutional DeFi requires robust, scalable, and secure financial products. The XRPL-native lending protocol addresses these needs by providing a decentralized, protocol-native solution for lending that reduces reliance on intermediaries, enhances transparency, and offers a higher degree of security.

The lending protocol specs, XLS-65d, will allow for the pooling of assets (public or private) represented by Vault shares, with optional Permissioned Domain access, while XLS-66d will introduce on-ledger, fixed-term, uncollateralized lending with off-chain underwriting and first-loss capital protection, allowing financial institutions to issue credit and manage risk directly on the blockchain. You can expect these developments to undergo voting in Q2 of 2025.

Key Use Cases:

  • Institutional Lending Markets – Banks, fintechs, and funds can tokenize and distribute loans onchain.

  • Stablecoin & RWA Integration – Lending backed by tokenized assets and compliance-focused stablecoins.

Expanding Programmability 

As announced in September, Ripple, in collaboration with the community, is committed to bringing permissionless programmability to the XRPL. Programmability on the XRPL offers an opportunity to seamlessly connect its powerful, native building blocks with the flexibility of custom on-chain business logic. This vision focuses on preserving what makes the XRPL special—its efficiency, reliability, and simplicitywhile empowering builders to unlock new possibilities. This goal requires a measured approach, with careful steps that ensure the robustness of the network. 

Native Programmability

The first step of this broader effort will see the introduction of 'Extensions,’ a feature that allows developers to attach small pieces of code to existing XRPL primitives, enhancing their functionality without the need for entirely new smart contracts

This approach can enable the customization of features like escrows, automated market makers (AMMs), and tokens, making them more adaptable to specific use cases while maintaining efficiency and security. For instance, “Smart Escrows” allow developers to incorporate custom release conditions, such as notary approvals or price-based triggers, without needing to rebuild the escrow mechanism from scratch. This method preserves the robustness of XRPL’s native features while offering tailored solutions for complex requirements.

The timeline toward deployment is outlined below:

  • Q1: Early devnet for smart escrows

  • Q2: Full-functional Smart Escrow devnet

  • Q3: Release Smart Escrows in an amendment for voting

  • Q4: Smart Contract devnet

For a detailed overview on ‘Extensions’ and broader programmability efforts you can dive into RippleX Devto blog.

XRPL EVM Sidechain

The XRPL EVM sidechain serves a complementary role to the XRPL, but is not a replacement for mainnet programmability. 

Set for Mainnet launch in Q2 2025, the XRPL EVM Sidechain offers a great opportunity to attract EVM ecosystem developers to the XRPL ecosystem. It can also be used to launch protocols that are not currently possible on the XRPL - especially ones that are already written in Solidity, or specifically require the EVM. This bridged solution, using a cross-chain approach, is useful if a project requires an alternative form of programmability.

Key Benefits:

  • First-Mover Advantage: Be among the first to deploy cross-chain or EVM dApps on an emerging sidechain ecosystem tied to XRPL.

  • Access a Vast Ecosystem: Tap into the 5.7M+ XRP wallet holders and gain exposure to a thriving, established blockchain community.

  • Seamless Development: Use familiar EVM tools to build, port, or fork dApps quickly, with minimal barriers to entry.

Looking Further Ahead

As tokenization and decentralized finance continue to evolve, XRPL is positioning itself as a leader in regulated onchain finance. With deep liquidity, compliance-friendly features, and seamless institutional integration, the next phase of Institutional DeFi will be built on XRPL. 

While a dedicated roadmap page is in development, the broader XRPL ecosystem is actively shaping the future of institutional DeFi through innovations such as Automated Market Makers (AMMs), Price Oracles, Decentralized Identifiers (DIDs), and new tokenization standards. These developments reflect ongoing collaboration across the network to enhance security, efficiency, and institutional-grade financial tools. 

For deeper insights into XRPL’s future, join us at XRPL Apex 2025, where David Schwartz will outline the roadmap and explore the latest advancements driving Institutional DeFi forward.

Reasons for optimism

Ripple hopes that leaning into institutional DeFi, including real-world assets (RWAs), will supercharge the network’s growth, according to the blog post.

Tokenized RWAs represent a $30-trillion market opportunity globally, Colin Butler, Polygon’s global head of institutional capital, told Cointelegraph in an interview.

Trump, who has promised to turn the US into the “world’s crypto capital,” plans to tap industry-friendly leaders to head key financial regulators, including the US Securities and Exchange Commission.

Several asset managers have applied to list XRP exchange-traded funds (ETFs) in the US, which JPMorgan expects could attract billions in investor inflows.

Some experts have suggested that the SEC case against Ripple, ongoing since 2022, could be paused or withdrawn entirely.

On Feb. 25, the US regulator dropped its probe into Uniswap, a DEX, as part of a broader pivot on crypto policy under Trump. 

 

Source

 

community logo
Join the TheDinarian Community
To read more articles like this, sign up and join my community today
0
What else you may like…
Videos
Podcasts
Posts
Articles
🚨NEW: Watch @BoHines sit down with @CryptoAmerica_

Watch @BoHines sit down with @CryptoAmerica_ to discuss key details of the White House crypto report including anticipated new DOJ guidance, as well as fresh commentary on the @rstormsf trial, and the nomination of @BrianQuintenz to lead the @CFTC.

00:28:43
Why Invest In XRP?

Because Ripple Is EVERYWHERE!

This is on Wall Street... NY

00:00:06
👉"You're gonna be told that there is a craft on its way to Earth.

"That 100 fxxxing percent is the lie you are going to be told."

Jeremy Corbell in January 2025

00:02:38
👉 Coinbase just launched an AI agent for Crypto Trading

Custom AI assistants that print money in your sleep? 🔜

The future of Crypto x AI is about to go crazy.

👉 Here’s what you need to know:

💠 'Based Agent' enables creation of custom AI agents
💠 Users set up personalized agents in < 3 minutes
💠 Equipped w/ crypto wallet and on-chain functions
💠 Capable of completing trades, swaps, and staking
💠 Integrates with Coinbase’s SDK, OpenAI, & Replit

👉 What this means for the future of Crypto:

1. Open Access: Democratized access to advanced trading
2. Automated Txns: Complex trades + streamlined on-chain activity
3. AI Dominance: Est ~80% of crypto 👉txns done by AI agents by 2025

🚨 I personally wouldn't bet against Brian Armstrong and Jesse Pollak.

👉 Coinbase just launched an AI agent for Crypto Trading

In the latest episode of the XDC MENA Podcast, host Rebecah Dausen is joined by Amir Neghabian, founder of Vital Veda, to explore how blockchain is modernizing the way we approach Fitness.

Why you should tune in:
-Learn how decentralized systems can verify the authenticity of Fitness
-Discover how Web3 opens access to Fitness knowledge
-Understand XDC’s role in enabling trusted, wellness-driven ecosystems

🎥 Watch now:

Still the best infographic about total #XRP circulation, updated. (SBI Holdings fiscal year end report)

~36b left in escrow..

post photo preview

The @WhiteHouse cited Pyth in its latest report on digital financial technology, linking to the network’s research on building perpetual futures.

A small mention, but a meaningful signal that onchain finance is gaining visibility in the broader policy conversation.

As discussions around modernization and regulation continue, one thing is clear: transparent, real-time market data is no longer just a back-office detail. It’s foundational to the next chapter of global finance.

The price of everything, everywhere 🇺🇸

https://whitehouse.gov/wp-content/uploads/2025/07/Digital-Assets-Report-EO14178.pdf

post photo preview
post photo preview
PYTH: We'll Always Have Coldplay

Welcome back to The Epicenter, where crypto chaos meets corporate cringe.

But surprisingly, crypto has not been the most chaotic corner of the internet as of late.

That honor goes to the startup Astronomer, whose CEO’s cheating scandal broke the web in a glorious meme-fueled media frenzy. The company’s damage control? Hiring Gwyneth Paltrow as a “temporary spokesperson.” Do we think they’re grasping at straws or setting a new standard for PR?

Meanwhile, the markets didn’t blink. BTC is still flexing near its all-time highs. Michael Saylor’s bringing a bitcoin-adjacent money-market product to Wall Street. A pharma company just earmarked $700M to stack BNB, and analysts are calling time of death on the four-year crypto cycle. It’s a steady boom now, kittens.

A few things that are also worth noting: Winklevoss vs. JPMorgan, Visa’s take on stablecoins, and Robinhood’s Euro drama that defies the chillness of eurosummer.

Let’s get into it 👇

⛓️ The On-Chain Pulse: What’s Happening on the Front Lines of Finance

This week’s biggest news in crypto and all things digital assets

🗣️ Word on the Street: What the Experts are Saying

Stuff you should repost (or maybe even cough reword and take credit for)

Meme of the Week

🏦 Kiss my SaaS: What’s Changing the Game for Fintech

Things you should care about if you want to impress your coworkers

Closing Thoughts

From meme-fueled PR stunts to Bitcoin-backed money-market funds, this week reminded us that markets move fast—and headlines move faster. With Wall Street automating itself, fintechs beefing with banks, and even your smartphone becoming a miner, anything is possible. Stay curious, stay cynical, and as always—stay sharp and stay liquid. We’ll see you back here in two weeks.

— The Epicenter, powered by Pyth Network

 

🙏 Donations Accepted 🙏

If you find value in my content, consider showing your support via:

💳 PayPal: 
1) Simply scan the QR code below 📲
2) or visit https://www.paypal.me/thedinarian

🔗 Crypto – Support via Coinbase Wallet to: [email protected]

 

Read full Article
post photo preview
4 Fintech Companies 💸& Things To Know About 🤔

The fintech revolution is reshaping the way we manage, invest, and move money, breaking down traditional barriers and empowering individuals worldwide. As financial technology continues to evolve at a rapid pace, a select group of innovative companies are leading the charge by offering groundbreaking solutions that redefine banking, payments, and digital assets. Whether you’re a savvy investor, an industry professional, or simply curious about the future of finance, discovering these trailblazing fintech companies is essential to understanding today’s dynamic financial landscape.

 

  1.  Alina Invest - The AI Wealth Manager for GenZ Women

Alina is aimed at women under 25 who identify as beginner investors. They're an SEC-registered investment advisor that charges $120/year for membership. The service "buys and sells for you" and gives up notification updates of recent transactions like a wealth manager would.

👉 Getting people to invest early is crucial to building long-term wealth. One thing that holds them back is a lack of confidence and experience. Being targetted "for beginners" and people who live on TikTok should appeal. I love the sense of "we're buying and selling for you." Funds always do that, but making it an engagement mechanic is very smart. The risk here is that building a wealth business will take decades for the AUM to compound. But the next generations, Wealthfront or Betterment, will look something like Alina.

2. Blue layer - The Carbon project funding platform

Bluelayer allows Carbon project developers to take from feasibility studies to issuing credits, tracking inventory, and managing orders. Developers of reforestation, conservation, direct air capture, and other projects can also directly report to industry registries. 

👉 Carbon investing and tax credits are heavily incentivized but need transparent data. By focusing on the developers, Bluelayer can ensure the data, reporting, and credits lifecycle is all managed at the source. This is smart.

3. Akirolabs - Modern Procurement for enterprise

Akiro is a "strategic" procurement platform aiming to help enterprise customers identify risks, value drivers, and strategic levers before issuing an RFP. It aims to bring in multiple stakeholders for complex purchasing decisions at multinationals. 

👉 Procurement is a great wedge for multinational corporate transformation. Buying anything in an enterprise that uses large-scale ERPs is a nightmare of committees and spreadsheets. Turning an oil tanker-sized organization around is difficult, but the right suppliers can have a meaningful impact in the short term. That only works if you can buy from them. Getting people on the same page with a single platform is a great start.

4. NeoTax - Automated Tax R&D Credits

NeoTax allows companies to connect their engineering tools to calculate available tax advantages automatically. Once calculated, the tax fillings are clearly labeled with supporting evidence for the IRS.

👉 AWS and GCP log files and data are a goldmine. Last week, I covered Bilanc, which uses log files to figure out per-account unit economics. Now, we calculate R&D tax credits. The unlock here is LLM's ability to understand unstructured data. The hard part is understanding the moat, but time will tell.

In an era where technology and finance are increasingly intertwined, these four fintech companies stand out as catalysts for positive change. By driving progress in digital payments, asset management, lending, and decentralized finance, they are not only making financial services more accessible and efficient—they are also paving the way for a more inclusive and empowered global economy. Staying informed about their innovations can help you seize new opportunities and take part in the future of finance.

 

👀Things to know 👀

 

PayPal issued low guidance and warned of a “transition year.” The stock is down 8% in extended trading despite PayPal reporting a 9% growth in revenue and 23% EBITDA. Gross profit is down 4% YoY. PayPal's total revenues were $29Bn for the year

Adyen reported 22% revenue growth and an EBITDA margin of 46% for the full year. Adyen's total revenues were $1.75bn for the full year. The margin was down from 55% the previous year, impacted by hiring ahead of growth.

🤔 PayPal’s Braintree (unbranded) is losing market share in the US, while Adyen is winning it. eCommerce is growing ~9 to 10% YoY, and PayPal’s transaction revenue grew by 6.7%. The higher interest rate environment meant interest on balances dragged up the total revenue figure. Their core business is losing market share. Adyen is outgrowing the market by ~12%.

🤔 The PayPal button (branded) is losing to SHOP Pay and Apple Pay. The branded experience from Apple and Shopify is delightful for users; it’s fast and helps with small details like delivery tracking. That experience translates to higher conversion (and more revenue) for merchants.

🤔 The lack of a single global platform hurts PayPal, but it helps Adyen. In the earnings call, the new CEO admitted their mix of platforms like Venmo, PayPal, and Braintree are holding them back. They aim to combine and simplify, but that’s easier said than done.

🤔 Making a single platform from PayPal, Venmo, and Braintree won’t be easy. There’s a graveyard of payment company CEOs who tried to make “one platform” from things they acquired years ago. It’s crucial if they’re going to grow that they get their innovation edge back. Adyen has one platform in every market.

🤔 PayPal’s UK and European acquiring business is a bright spot. The UK and EU delivered 20% of overall revenue, growing 11% YoY. Square and Toast don’t have market share here, while iZettle, which PayPal acquired in 2018, is a strong market player. Overall though, it’s yet another tech stack and business that’s not part of a single global platform.

The two banks provided accounts to UK front companies secretly owned by an Iranian petrochemicals company. PCC has used these entities to receive funds from Iranian entities in China, concealed with trustee agreements and nominee directors. 

🤔 This is the headline every bank CEO fears. Oof. Shares of both banks have been down since the news broke, but this will no doubt involve crisis calls, committees, appearing in front of the regulator, and, finally, some sort of fine.

🤔 The "risk-based approach" has been arbitraged. A UK company with relatively low annual revenue would look "low risk" at onboarding. One business the FT covered looked like a small company at a residential address to compliance staff. They'd likely apply branch-level controls instead of the enterprise-grade controls you'd see for a large corporation. 

🤔 Hiring more staff won't fix this problem; it's a mindset and technology challenge. In theory, all of the skill and technology that exists to manage risks with large corporate customers (in the transaction banking divisions) are available to the other parts of a bank. In practice, they're not. Most banks lack a single data set and the ability for compliance officers in one team to see data from another part of the org. Getting the basics right with data and tooling is incredibly hard and will involve a multi-year effort. 

🤔 These things are rarely the failure of an individual or department; the issue is systemic. While two banks are named in this headline, the issue is everywhere. Banks need more data and better data to train better AI and machine learning. That all needs to happen in real-time as a compliment to the human staff. Throwing bodies at this won't solve the visibility issue teams have.

 🙏 Donations Accepted 🙏

If you find value in my content, consider showing your support via:

💳 PayPal: 

1) Simply scan the QR code below 📲
2) or visit https://www.paypal.me/thedinarian

🔗 Crypto – Support via Coinbase Wallet to: [email protected]

Or Buy me a coffee: https://buymeacoffee.com/thedinarian

Your generosity keeps this mission alive, for all! Namasté 🙏 Crypto Michael ⚡  The Dinarian

 

Read full Article
post photo preview
What is XAH and Xahau?

If you're new to XRP, you may have noticed some of us discussing another network named 'Xahau'.

It's Like XRP ... But Different

The Xahau network was created in 2023, and its starting point was the open-source code for the XRP Ledger. A small team of researchers and entrepreneurs decided to add smart contracts to the network code.


The XRP Ledger has no smart contract capabilities, by default.

To integrate smart contracts, the team decided to use an architecture that includes 'WASM' or 'web assembly' code. Each account can have up to 10 'hooks' installed that are triggered for transactions that match specific criteria. They can run before or after a transaction is processed. This enables a variety of use cases that do not involve the need to change the network's core code.

Hooks

A 'hook' is what is known as a smart contract that can be triggered in relation to a specific account and its transactions.

The term arises from the programming world, where it generally means "code that runs based on triggering conditions." In Xahau's case, it indicates code that is run before, or after, a transaction is processed.
 
Each hook must be installed on a specific account by the party that controls the account - i.e., the secret key holder.
 
What Can XAH Do That XRP Cannot?
 
The primary benefit from the use of hooks, is that the core network code does not need to be changed every time a new use case is identified. This means that additional use cases can be addressed immediately, with no requirement for intervening steps, such as:
  • Community review
  • Community approval
  • Amendment voting
All of those steps are eliminated with the use of hooks; new use cases can be addressed as fast as the code can be developed.
 
To read more about how hooks enables Xahau to handle more use cases than even the XRPL, you can read this article:
 
Key Differences From XRP
 
Other unique differences from the XRP Ledger include:
  • Much smaller supply ~612 million coins vs. 100 billion coins
  • XAH hodlers are rewarded at 4% of their account balance. There are no rewards for XRP.
  • Governance participants are incentivized
  • Payment channels available for user-created tokens (IOUs)
  • URI tokens instead of NFT tokens
Who's Who of Xahau?
 
The list of those that are either founders, or closely associated with the founding organizations, is extensive. Here are the names of three organizations mentioned in the whitepaper, or their current moniker:
  • Xaman (a.k.a. XRPL Labs)
  • Gatehub
  • InFTF (Inclusive Financial Technology Foundation)
There exists a long list of impressive developers, architects, and technologists among the Xahau inner circle. But the three names that people associate most prominently with the leadership of the Xahau network are Wietse Wind, Richard Holland, and Denis Angell. The links to their 'X' accounts are:
 
Friend Or Foe?
 
This topic is one of the most contentious.
 
While Ripple, the company with the largest stake of XRP, showed interest in hooks early on, they ultimately decided to advocate for a different approach; the use of an EVM-based solution (Ethereum Virtual Machine) to handle smart contracts on the XRP Ledger. This decision was met with consternation by the Xaman team that had worked with them for several years to advocate for the use of hooks.
 
You can read more about the 'business politics' part of this topic here:
 
So how do Xahau fans view the relationship between XRP and XAH?
 
The Xahau team - and many of its community members - advocate for the use of a 'dual-chain' solution to implement smart contracts. This can be accomplished by the use of 'listener' software, along with native Xahau hooks.
 
A proof of concept, developed by Denis Angell, has demonstrated that bi-lateral communication can work with a simple approach.
 
From an economic standpoint, every chain that has its own digital asset is a competitor; but the simple way to think about Xahau, is that a 'bunch of XRP geeks' decided to implement smart contracts on their own version of the XRP Ledger.
 
The team emphasized transparency along the way, and initially received support from the primary XRP stakeholder, Ripple. They published Xahau as open-source code that could, in theory, be back-engineered and integrated with the XRP Ledger. You can clearly observe the team's idealistic mindset in early marketing mistakes, where they named their digital asset 'XRP Plus' in an effort to emphasize the way that they viewed their creation. While this resulted in confusion - and even suspicion - in its early days, the team quickly pivoted, and named their digital asset 'XAH', which became its ticker symbol.
 
Synergy effects between the two camps speak to a genuine camaraderie, with many Xahau developers being open and willing to help with changes to the core XRP Ledger protocol. You can find many examples of this open dialogue on the 'X' platform.
 
How To Purchase XAH
 
If you wish to speculate by buying XAH directly, it is available in a variety of convenient locations, depending on where you are located. If you're in a country that is supported by Bitrue, you can directly purchase or trade XAH by using that exchange.
 
On January 20th, 2025, Bitmart announced that it supports trading of XAH for customers in their list of supported countries; And in late March, another major exchange announced that they would be supporting XAH trading pairs: Coinex.
 
If you're located in the United States, you can purchase XAH directly from a vendor known as 'C14'. The xApp for C14 is located in the Xaman wallet.
 
XRP Ledger geeks can also purchase XAH IOUs on the XRPL Dex and then convert them to 'real' XAH using a Gatehub bridge. This is available in countries that Gatehub supports.
 
Which XAH Accounts Should I Follow?
 
On the 'X' platform, there exists two major community groups for XAH fans:
In addition to the Xahau notables I've already mentioned in this article, my advice is to take a look at who is posting in the above two communities. There are many impressive leaders and entrepreneurs included. You should be able to find multiple 'X' accounts that reflect your interests.
 
Xahau Development Roadmap
 
Xahau leaders have published a roadmap for 2025 that lists their various goals for the ecosystem:
 
To read a detailed explanation for each item, refer to this: Xahau Roadmap Super Thread
 
One of the most incredible waypoints listed is 'JavaScript Hooks Implementation.' 🤯
JavaScript!
 
With the 'JavaScript Hooks Implementation', Xahau is making history; it will enable anybody that knows JavaScript to easily create and install a smart contract. While networks like Ethereum are impressive early movers, they require developers to learn a new language and syntax.
 
Xahau will soon open 'crypto smart contracts' to a group of developers that number in the tens of millions.
 
Project L-10K
 
Project L-10K is one of the most important items in the pipeline. L-10K refers to the effort to boost the throughput of Xahau consensus to over 10,000 transactions per ledger! This will benefit hosted projects such as Evernode, and future issued assets. Heading up the effort is Richard Holland, who provided a progress update to the community in late May of 2025:
 
To learn more about this ambitious effort, you can watch his full presentation here:
The Future Of Defi And Payments
 
Once you've seen the extensive list of use cases that XAH easily handles, it's truly inspiring. Xahau is everything that you love about XRP, plus a long list of more things to love. ❤️
 
Be an early adopter of XAH and the Xahau network! Join the community groups listed and follow the accounts that seem to reflect your own interest - speculator, developer, or crypto fan. You have a place in our community, no matter what your background or interests are. Welcome to the future of crypto Defi and Payments
 
Sources:
 
 
NOTE: Payment channels for IOUs is currently in amendment status for the XRP Ledger, authored by Denis Angel here:
 
 

🙏 Donations Accepted 🙏

If you find value in my content, consider showing your support via:

💳 PayPal: 

1) Simply scan the QR code below 📲
2) or visit https://www.paypal.me/thedinarian

🔗 Crypto – Support via Coinbase Wallet to: [email protected]

Or Buy me a coffee: https://buymeacoffee.com/thedinarian

Your generosity keeps this mission alive, for all! Namasté 🙏 Crypto Michael ⚡ The Dinarian

 
 
Read full Article
See More
Available on mobile and TV devices
google store google store app store app store
google store google store app tv store app tv store amazon store amazon store roku store roku store
Powered by Locals