The XRP Ledger (XRPL) has activated the AMMClawback amendment, a major update to improve the regulatory compliance of its Automated Market Maker (AMM) pools. The upgrade, which achieved 91.43% consensus from validators, ensures token issuers have control over assets deposited in liquidity pools under specific conditions. XRP Ledger Activates AMMClawback, Enhancing AMM Pool Compliance In a recent post on the X platform , XRPScan confirmed that the XRP Ledger has successfully implemented the AMMClawback amendment. This update introduces new rules governing liquidity pools, particularly for tokens with regulatory requirements. The amendment enables token issuers to retrieve assets from AMM pools under predefined circumstances. If a token is frozen, users will no longer be able to deposit new assets into the associated liquidity pool. This restriction prevents unauthorized transactions involving frozen tokens. More so, this development comes just days after Ondo Finance confirmed its push for expanding tokenized assets. The OUSG deployment on XRPL will enhance institutional liquidity and regulatory compliance. ONDO and XRP prices surged following the news, reflecting strong market confidence XRP/RLUSD AMM Pool Now Possible With the AMMClawback amendment now active, the creation of an XRP/RLUSD AMM pool is now possible. This development will improve liquidity for both XRP and Ripple USD (RLUSD), a stablecoin launched in December 2024. Previously, RLUSD could not participate in AMM pools due to its built-in clawback feature. This limitation has now been removed, allowing RLUSD holders to contribute liquidity and trade seamlessly within the XRP Ledger ecosystem. This upgrade could enhance decentralized finance (DeFi) activity on the network. Since Ripple’s stablecoin launch, major exchanges have steadily increased its adoption. RLUSD’s reserve report confirms strong backing, boosting investor confidence. Consequently, its most recent listing on Margex expanded its reach in high-leverage trading. New AMM Pool Rules for Wallets and Token Issuers The amendment introduces stricter deposit rules for liquidity providers. If one of the paired tokens is frozen, wallets cannot deposit single-sided or double-sided assets into an AMM pool. Additionally, unauthorized accounts can deposit only once if the paired asset is allowed. Token issuers must now use the AMMClawback function to retrieve assets from pools instead of the standard clawback transaction. This provides a structured approach to enforcing compliance without disrupting normal trading activity on the XRP Ledger. The amendment received 28 out of 35 votes from validators, surpassing the 80% threshold required for approval. Additionally, the XRP Ledger community expects this change to improve regulatory alignment while expanding opportunities for decentralized liquidity. The post XRP Ledger AMMClawback Upgrade Is Now Live On Mainnet, Here’s All appeared first on CoinGape .
