The XRP Ledger has activated the AMMClawback amendment. What this amendment does is that it allows issuers to recover tokens even after they are sent. Importantly, this update enables the stablecoin of Ripple, RLUSD, to be used in AMM pools. Here is how this change impacts the XRP ecosystem.
What is the AMMClawback Amendment?
As mentioned earlier, the activation of the AMMClawback amendment by the XRP Ledger allows issues to recover tokens even after they are sent. What makes this activation pertinent is that if a recipient is involved in illegal activities, the issuer can easily take back the tokens.
How This Affects Ripple’s RLUSD Stablecoin?
Before the activation of the AMMClawback amendment, it was impossible to use RLUSD outside the ecosystem of centralised exchanges. Enabling RLUSD in AMM pools, the activation has unlocked new opportunities for Ripple’s stablecoin.
It is believed that the XRP/RLUSD pool will give more liquidity to Ripple’s stablecoin.
Emi Yoshikawa, a former executive at Ripple, has expressed excitement about the new development. In a social media post, Yoshikawa has appreciated the XRPL community extensively.
Why This is Important for Regulatory Compliance
Expressing Ripple’s commitment to global financial regulatory requirements, Jack McDoanld, an executive at Ripple, stated that RLUSD is compliant with the highest regulatory standards.
Experts think that the new feature aligns well with global financial regulatory requirements. Now, if RLUSD is linked to fraud, Ripple can easily take back the tokens.
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Ripple USD Market Overview
The market cap of Ripple USD stands at $72,339,549. The 24-hour trading volume of RLUSD remains at $58,098,278. The current circulation supply of RLUSD is 72,300,301.
The activation of the AMMClawback amendment on the XRP Ledger marks a significant step in improving liquidity and regulatory compliance for Ripple’s RLUSD stablecoin. By enabling RLUSD to be used in AMM pools, this update creates new opportunities for growth while ensuring financial security.
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