XRP News Today: XRP Ledger Upgrade Aims to Outpace Ethereum in Institutional Adoption

The XRP Ledger (XRPL) is on the brink of a significant upgrade with the introduction of XLS-80, a feature designed to enhance its capabilities and attract more institutional investors. This upgrade is set to launch in June and focuses on permissioned domains and built-in compliance, aiming to simplify the adoption of blockchain technology for regulated institutions.

XLS-80 brings native compliance capabilities directly to the XRP Ledger, introducing permissioned domains that allow regulated institutions to operate on-chain with minimal friction. This could reduce the need for external compliance solutions, making it easier for financial institutions to adopt blockchain technology. The feature is expected to offer greater transparency, reduced risk, and easier auditing, positioning XRPL as a more seamless fit for compliance-heavy environments.

In contrast, Ethereum, which has long dominated the DeFi landscape, relies heavily on off-chain compliance tools. XLS-80's on-chain compliance could provide a more integrated and efficient solution for institutions, potentially outshining Ethereum's off-chain compliance systems. David Schwartz, CTO of Ripple, explained that under XLS-80, only users from approved domains will be able to provide liquidity in permissioned AMMs. If a user is removed from a domain, they must sell their liquidity provider tokens on the open market, ensuring strict control without compromising the broader XRPL ecosystem.

The June upgrade of XRPL, version 2.5.0, is seen as a pivotal move that could see XRPL outpace Ethereum and even Solana in institutional adoption. The upgrade includes enhanced security protocols, improved scalability, and better interoperability with other blockchain networks, making it a more attractive option for institutional investors. The XRP Ledger's focus on institutional adoption is a strategic move that could position it as a leader in the blockchain industry, driving innovation and improvement across the broader blockchain ecosystem.

While Ethereum still leads in overall DeFi usage, XRPL's XLS-80 feature could mark a major shift in how regulated entities approach blockchain adoption. By building compliance into the chain itself, XRPL might just have the edge needed to lead the next wave of institutional blockchain adoption. The impact of XLS-80 on the broader blockchain ecosystem is also noteworthy, as increased competition could drive innovation and improvement, resulting in better products and services for users, as well as more robust and secure blockchain networks.