Ripple is working to connect decentralized finance (DeFi) with regulated institutions using the XRP Ledger. The goal is to create a compliant and controlled DeFi environment.
Although key components like stablecoin settlement and identity layers are already established, the liquidity on XRPL still falls short compared to leading permissionless platforms. The current focus is on attracting institutional-level volume.
Key takeaways: - DeFi is designed for regulated institutions, not retail speculation. - Permissioned markets and tokenized collateral are essential. - Liquidity growth is the main challenge. - XRPL utility focuses on value routing instead of token burns.
This approach emphasizes compliance and real-world integration instead of chasing fast-moving DeFi trends.
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Ecosystem Vision: DeFi Meets Regulation
Ripple is working to connect decentralized finance (DeFi) with regulated institutions using the XRP Ledger. The goal is to create a compliant and controlled DeFi environment.
Although key components like stablecoin settlement and identity layers are already established, the liquidity on XRPL still falls short compared to leading permissionless platforms. The current focus is on attracting institutional-level volume.
Key takeaways:
- DeFi is designed for regulated institutions, not retail speculation.
- Permissioned markets and tokenized collateral are essential.
- Liquidity growth is the main challenge.
- XRPL utility focuses on value routing instead of token burns.
This approach emphasizes compliance and real-world integration instead of chasing fast-moving DeFi trends.
Do you think regulated DeFi is the bridge institutions need, or does it limit the true purpose of DeFi?
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