Ripple rolls out the permitted Dex in the XRP ledger, and SBI CEO shares Hot Take

Yoshitaka Kitao, CEO of SBI Group, has published a tweet. This tweet highlighted the development of XRPL's permission Dex (distributed exchange) major new step in the XRP ledger.

Here's how the allowed DEX in XRPL works:

This is a vital move for real financial apps running in XRPL. According to the latest press release issued by Ripple, the permitted DEX allows regulated financial institutions to “trade or move value with XRPL distributed exchanges (DEXs) without compromising compliance, scalability or decentralization. The launch came after Ripple shared an overview of its vision to unlock Defi access for financial institutions in its XRP ledgers.

Allowed DEXs provide a fixed set of rules only approved participants to match offers with a specific group known as the allowed domain. In particular, this type of DEX allows app creators to create permission amounts for allowed coins, such as XRP, Stablecoins, and Rapped Cryptocurrencies.

An XRP ledger can run multiple permitted Dexes, each “allowed to a uniquely associated with an allowed domain and acts as an Allow list for accessing that DEX,” the press release states. Such permitted DEX transactions can only work for other transactions offered with the same permitted DEX. Each of these platforms on XRPL can have an unlimited number of crypto pair purchase orders.

This is the next step in XRPL

Ripple believes that this permitted DEX launch is the next step in XRPL to resolve the hurdles of adding compliance to DEX without violating the concept of decentralization, cost-effectiveness, or user-control. As mentioned above, the new permitted DEX will allow only certified participants to participate in transactions on this platform.

Thanks to the launch of this new platform, financial institutions can quickly start using XRPL DEX and enjoy every aspect of the compliance it offers. This will launch a new level of in-facility trading activity from here. This is regulated, easier to expand, and charges lower fees for transactions.

The following use cases can be considered in the new XRPL-driven DEX: Stablecoin/Fiat FX swaps, contractor/payment payments, cross-border B2B payments, and the Ministry of Corporate Treasury.