XRP News Today: XRP Ledger Set to Unlock DeFi Compliance with Native KYC/AML Credentials

XRP Ledger is on the verge of activating a significant amendment known as “Credentials,” which has garnered 28 out of 35 votes (82.86%) required for activation. According to the XRP Ledger documentation, the amendment is expected to activate on Sept. 4, 2025, at 3:51:21 a.m. UTC. The Credentials amendment introduces tools for managing compliance requirements using the XRP Ledger, supporting functionalities such as Know Your Customer (KYC) and Anti-Money Laundering (AML) verification processes through decentralized identities [1]. The amendment introduces three new transaction types: CredentialCreate, CredentialAccept, and CredentialDelete, enabling users to create, accept, and remove credentials on the ledger. Additionally, it modifies existing transaction types, adds new fields to several transaction types, introduces a new type of ledger entry, and allows for the lookup of credential entries [1].

The Credentials amendment enhances the XRP Ledger’s capabilities by enabling the use of decentralized identities for compliance purposes. This development is significant for institutional and individual users who seek to operate within regulatory frameworks that require KYC and AML compliance. The amendment allows credentials to be attested to a user or institution and issued to their decentralized identity natively on the XRP Ledger [1]. The activation of the Credentials amendment follows the recent activation of other amendments, including fixAMMv1_3, fixEnforceNFTokenTrustlineV2, and fixPayChanCancelAfter, which were implemented on the XRP Ledger mainnet in the past week [1]. These amendments highlight the ongoing evolution of the XRP Ledger, with a focus on improving functionality and compliance capabilities.

In parallel with these developments, XRP has experienced notable price volatility. According to CoinGecko data, XRP has surged by 400% over the past year, outpacing returns of Bitcoin and Ethereum, which have gained 88% and 73%, respectively. At the time of writing, XRP was trading 1.61% higher over the past 24 hours, at $2.87, following a rebound from a low of $2.69 on Sept. 1. The broader cryptocurrency market has shown signs of recovery after a recent downturn, with XRP reaching an intraday high of $2.88. Traders are monitoring key resistance levels, including the daily SMA 50 at $3.09, $3.38, and $3.66, as potential price targets for XRP [1].

Despite the recent positive momentum, the broader cryptocurrency market faces several challenges. Bitcoin, Ethereum, and XRP have all seen declines from their July highs, with market participants questioning whether this is a temporary correction or a sign of deeper structural issues. The decline has been attributed, in part, to uncertainty around Federal Reserve monetary policy and the potential for delayed interest rate cuts. Historically, low interest rates have favored risk assets like cryptocurrencies, and any delays in rate reductions could dampen investor enthusiasm [2]. Additionally, the recent popularity of crypto treasury companies—where firms aggressively acquire large amounts of a specific cryptocurrency—has waned, leading to a cooling of speculative fervor and contributing to market volatility.

Another key factor affecting the crypto market is the macroeconomic uncertainty created by shifting government policies. Tariff actions and evolving regulatory frameworks have introduced policy fog, making it difficult for investors to assess long-term risks and opportunities. This uncertainty, coupled with the stickier inflationary environment, has reduced appetite for volatile, long-duration assets like cryptocurrencies [3]. While institutional investors remain bullish and digital asset products have seen strong inflows, retail investors have shown caution, with many still skeptical due to past market crashes. This divide between institutional and retail sentiment could lead to sharper pullbacks in the short term, even as long-term fundamentals for major cryptocurrencies remain intact [3].

Source: [1] Major XRP Ledger Amendment to Officially Launch in Hours (https://u.today/major-xrp-ledger-amendment-to-officially-launch-in-hours-details) [2] Bitcoin, Ethereum, and XRP All Continue to Drop. Here's What ... (https://finance.yahoo.com/news/bitcoin-ethereum-xrp-continue-drop-094900395.html) [3] Bitcoin, XRP, and Ethereum Are Falling. Here Are the 3 ... (https://www.fool.com/investing/2025/09/02/bitcoin-xrp-and-ethereum-are-falling-here-are-the/)