XRP Ledger’s Permissioned Domains Amendment Ready for Activation

TLDR

• The XRP Ledger’s Permissioned Domains amendment has secured the necessary validator approval, reaching the required 80% support.
• XPMarket’s vote played a pivotal role in pushing the amendment past the threshold, leading to its activation.
• The Permissioned Domains amendment will go live on February 4, 2026, allowing regulated financial institutions to engage in decentralized activities.
• This amendment introduces a credential-based system to ensure KYC and AML compliance without exposing sensitive personal data.
• Permissioned Domains lay the foundation for future features such as the Permissioned DEX and the Lending Protocol on the XRP Ledger.

The XRP Ledger has reached a critical milestone with the approval of the Permissioned Domains amendment, XLS-80. After several weeks of uncertainty, the amendment secured the necessary support from validators, crossing the 80% threshold required for activation. The proposal now enters a two-week activation period, set to go live on February 4, 2026, bringing enhanced institutional compliance to the decentralized blockchain.

XPMarket’s Vote Pushes XLS-80 Over the Threshold

For weeks, the Permissioned Domains amendment had stalled at 79.41%, just one vote shy of the required threshold. XPMarket cast the deciding vote, pushing support to 80%, clearing the path for the amendment’s activation. The vote marks a key moment for the XRP Ledger, enabling regulated financial institutions to participate in the decentralized ecosystem with confidence.

The approval of XLS-80 represents a major shift in how the XRP Ledger can accommodate institutional-grade financial infrastructure. By allowing controlled access within the blockchain, the amendment paves the way for further regulatory-compliant features, such as the Permissioned DEX (XLS-81) and the Lending Protocol (XLS-66).

How Permissioned Domains Work on the XRP Ledger

Permissioned Domains introduce controlled environments within the XRP Ledger, restricting access to accounts with specific credentials. This credential-based system ensures compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations while maintaining user privacy. Only validated credentials are recorded, leaving no sensitive personal data exposed on the ledger.

The new system offers institutions a way to meet regulatory requirements while still benefiting from the XRP Ledger’s speed and transparency. Unlike private blockchains, which often compromise decentralization, Permissioned Domains maintain the public, decentralized nature of the XRP Ledger. This development allows institutions to interact with the blockchain in a compliant, secure environment.

Institutional Adoption Accelerated by Compliance Focus

For years, institutional adoption of public blockchains has been hindered by compliance concerns. Financial institutions require assurances that all participants meet strict regulatory standards. Permissioned Domains now provide a solution, ensuring that all counterparties within a domain meet the necessary KYC and AML requirements, thereby enabling safer transactions.

This amendment lays the groundwork for future XRP Ledger features, including a Permissioned DEX and the Lending Protocol. These features will further strengthen the XRP Ledger as a bridge between traditional finance and decentralized finance (DeFi), while addressing compliance needs. As regulatory frameworks evolve, Permissioned Domains offer the flexibility needed for institutional adoption.

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