The XRP Ledger Has Rolled Out a Members-Only DEX Designed for Regulated Institutions
The XRP Ledger (XRPL) has officially turned on a long‑anticipated feature that creates controlled, members‑only trading venues directly on its decentralized exchange, a milestone in its push to appeal to regulated financial players. Known as the Permissioned DEX upgrade, this amendment—identified as XLS‑81—is now live on the XRPL mainnet after achieving validator consensus earlier this month. Unlike traditional decentralized exchanges that allow anyone with a compatible wallet to trade freely, the newly launched Permissioned DEX framework introduces access restrictions: only approved participants can place and accept orders. This gated model gives banks, brokers, and other regulated institutions the ability to trade on‑chain while aligning with regulatory obligations, such as know‑your‑customer (KYC) and anti‑money‑laundering (AML) requirements. Key Takeaways Controlled On‑Chain Trading for Institutions At its core, the Permissioned DEX functions similarly to XRPL’s native order book system, but with a compliance layer built in. Operators of a permissioned domain define which users may interact with that market, and only accounts meeting certain compliance criteria can execute trades. These credential‑based marketplaces retain the ledger’s high‑performance settlement and transparency, while imposing access rules that institutions typically demand before participating in on‑chain trading. This marks a noteworthy departure from the fully open decentralized finance (DeFi) model that characterized much of blockchain’s growth so far. By enabling participants to impose entry criteria, the XRPL is tailoring its infrastructure to sectors where unvetted access is simply not acceptable, such as regulated banking and brokerage services. Building on a Broader Institutional Infrastructure The XLS‑81 upgrade doesn’t stand alone. It arrives on the heels of two other compliance‑oriented amendments that have already gone live on the network. Earlier this month, the Permissioned Domains upgrade (XLS‑80) activated, providing the foundational framework for defining credential‑restricted areas of the ledger. And on February 12, the Token Escrow feature (XLS‑85) was launched, extending native escrow functionality beyond XRP to include trustline‑based tokens, stablecoins, and tokenized real‑world assets. Token Escrow enables conditional settlement on the ledger, while Permissioned Domains and the new DEX system together offer a complete path from compliant issuance to controlled trading. Combined, these upgrades form a toolkit that supports institutional usage patterns not easily satisfied by open DeFi architectures. What This Means for TradFi and Crypto For regulated institutions, the addition of a permissioned DEX is more than a technical footnote—it provides on‑chain trading with controls that make legal and compliance teams comfortable. Banks that want real‑time settlement on digital assets, brokers that must adhere to strict counterparty checks, and asset managers dealing with tokenized securities can now consider blockchain solutions without sacrificing regulatory safeguards. Each permissioned domain effectively becomes its own marketplace, complete with separate order books and supported trading pairs, where only approved entities are permitted to operate. These private markets sit alongside the XRPL’s public order books, giving institutions choice in how they interact with on‑chain liquidity. This approach could open new avenues for regulated secondary markets—such as tokenized funds, compliant FX rails with stablecoins, and trading of tokenized real‑world assets—without forcing institutions into fully public DeFi spaces that many still view as risky or non‑compliant. Industry Reaction and Outlook Although everyday retail traders may barely notice the change in their day‑to‑day activity, industry observers see the rollout as a defining moment in the XRPL’s maturation. By embracing structures that mirror institutional expectations about compliance and counterparty controls, the network bridges a gap between traditional finance and blockchain infrastructure. As this permissioned framework takes shape, XRPL may attract participants who have shied away from decentralized markets precisely because of their openness. It remains to be seen how quickly institutions adopt these new capabilities and what kinds of trading ecosystems will form within permissioned domains, but the groundwork is now firmly in place. Regulated markets, compliance‑aware liquidity pools, and credential‑gated trading could soon become mainstream features on one of the oldest public blockchains in the space—a striking shift from the open‑to‑all ethos that once defined blockchain trading.
CFTC Chair Michael Selig Says the Crypto Market Structure Bill Is “On the Cusp” of Becoming Law
The United States may be on the verge of passing one of its most consequential crypto regulatory measures to date. Michael Selig, Chair of the Commodity Futures Trading Commission (CFTC), said the Digital Asset Market Clarity Act is now “on the cusp” of final approval, signaling that lawmakers are closing in on a framework that could redefine how digital assets are regulated across the country. Speaking on the progress of the bill, Selig said regulators are working to “future-proof our statutory framework for crypto,” emphasizing that policymakers want durable rules that provide long-term stability rather than guidance that can be easily undone by a change in administration. Bill Advances Toward Final Approval The legislation has already cleared significant legislative milestones. In July 2025, the U.S. House of Representatives passed the Clarity Act with a decisive 294–134 vote, reflecting bipartisan backing for clearer crypto oversight. In the Senate, a related market structure proposal advanced through the Senate Agriculture Committee in January 2026, pushing the measure closer to a full floor vote. Negotiations are now ongoing in the Senate, with lawmakers working through final adjustments before sending the bill to the President. According to Selig, the administration is eager to move quickly. “We’re going to get this thing across the line,” he said, underscoring confidence that the legislation could reach the President’s desk in the coming months. If enacted, the Clarity Act would establish clearer lines between federal regulators, particularly in determining when digital assets fall under the jurisdiction of the CFTC versus the Securities and Exchange Commission. Market participants have long argued that the lack of statutory clarity has created overlapping oversight, enforcement uncertainty, and hesitation among institutional investors. Why the Market Is Paying Attention For years, crypto firms operating in the United States have faced regulatory ambiguity. Exchanges, token issuers, and custodians have often navigated unclear definitions around what constitutes a security or a commodity. This uncertainty has contributed to what some analysts describe as a “regulatory discount” in U.S. digital asset markets, where capital formation and product launches have lagged behind more clearly regulated jurisdictions. A finalized market structure law could change that dynamic. Clear rules would give exchanges firmer compliance guidelines, provide token projects with defined pathways to market, and offer institutional investors greater legal certainty. Large financial institutions, many of which have remained cautious due to regulatory risk, could expand their exposure once a comprehensive framework is in place. Beyond immediate market reactions, Selig’s remarks point to a broader goal: regulatory durability. By embedding clearer definitions and oversight mechanisms into statute, lawmakers aim to reduce the reliance on shifting agency interpretations or enforcement-led policymaking. A Defining Moment for U.S. Crypto Policy If negotiations conclude successfully, the Digital Asset Market Clarity Act would mark one of the most comprehensive federal crypto frameworks adopted in the United States. The coming months will be decisive. While final Senate negotiations could still shape specific provisions, Selig’s public confidence suggests that momentum is firmly behind the bill. For an industry that has spent years operating under fragmented oversight, the prospect of a stable, legislated market structure is significant. Should the measure become law, it would not only clarify regulatory boundaries but also signal that the United States is prepared to set lasting rules for digital asset markets.
Abu Dhabi Funds Mubadala and Al Warda Held Over $1 Billion Worth of BlackRock’s Bitcoin ETF Shares at the End of Last Year
Abu Dhabi-based investment giants significantly expanded their exposure to Bitcoin through U.S.-listed exchange-traded funds in 2024, with combined holdings in BlackRock’s spot Bitcoin ETF surpassing $1 billion by year-end. New filings with the U.S. Securities and Exchange Commission (SEC) show that Mubadala Investment Company and Al Warda Investment together held nearly 21 million shares of BlackRock’s iShares Bitcoin Trust (IBIT) as of the end of the fourth quarter. IBIT, launched in 2024, is one of the largest U.S. spot Bitcoin ETFs and provides direct exposure to the price of Bitcoin without requiring investors to custody the asset themselves. Key Takeaways Mubadala’s Position Jumps Sharply in Q4 Mubadala reported ownership of approximately 12.7 million IBIT shares at the close of last year, up from just over 8.7 million shares in its third-quarter filing. The increase of nearly 4 million shares in a single quarter marked a decisive expansion of its Bitcoin allocation. Based on valuations at the time of reporting, Mubadala’s IBIT stake was worth roughly $630 million. The buying spree came during a turbulent period for crypto markets. Bitcoin fell about 23% in the fourth quarter, yet Mubadala continued to build its position. As CoinDesk observed, “This move came as Bitcoin prices fell about 23% in the fourth quarter,” adding that “after making its first IBIT investment in late 2024, Mubadala has continued to add to the position.” The sovereign fund, which counts the Abu Dhabi government as a shareholder, initially disclosed IBIT exposure in Q4 2024, when its Bitcoin-linked holdings were valued at no less than $436 million. Al Warda Steadily Adds Exposure Al Warda Investment, which is connected to the Abu Dhabi Investment Council, also increased its IBIT allocation. The firm’s holdings rose from 7.96 million shares in the third quarter to more than 8.2 million shares by year-end—an increase of roughly 255,000 shares. At the time of the filing, Al Warda’s IBIT position was valued at approximately $408 million. Together, the two Abu Dhabi-linked funds controlled more than $1 billion in BlackRock’s Bitcoin ETF shares at the end of 2024, underscoring growing institutional acceptance of regulated crypto investment vehicles. Valuations Slide in 2025 Market conditions have since shifted. IBIT shares have declined 22.5% year-to-date, tracking Bitcoin’s pullback. With IBIT recently trading at $38.44, Mubadala and Al Warda’s combined exposure has fallen to roughly $803 million. Bitcoin itself is down around 1% in the past 24 hours, changing hands at $67,718—approximately 46% below its October all-time high of $126,080. The broader ETF market has also faced headwinds. According to CoinGlass data, total assets under management across U.S. Bitcoin ETFs have dropped from more than $116.7 billion to about $95.5 billion this year, reflecting over $21 billion in outflows. While there was a modest positive inflow on Friday, it followed two consecutive days of notable withdrawals as BTC prices weakened. Institutional Rotation Continues Not all institutions have maintained their exposure. Harvard University reduced its IBIT stake by 1.46 million shares—about $56 million worth—while simultaneously establishing an $86 million position in BlackRock’s Ethereum ETF, ETHA. The contrasting moves highlight a broader theme: while short-term price swings have pressured valuations, large institutional investors continue to treat regulated crypto ETFs as a strategic entry point into digital assets. For Abu Dhabi’s sovereign-backed funds, the scale of their IBIT holdings signals conviction in Bitcoin’s long-term role within global portfolios—even amid market volatility.
Ripple CEO Brad Garlinghouse Says There’s an 80% Chance the Clarity Act Passes by the End of April
Brad Garlinghouse believes the long-stalled Digital Asset Market Clarity Act is closer to becoming law than many expect. In a recent interview, the Ripple chief executive said there is an “80% chance” the bill will pass by the end of April, pointing to intensified negotiations between crypto firms, banks, and U.S. lawmakers. His comments come after months of gridlock in the Senate Banking Committee, where disagreements over stablecoin provisions derailed what had appeared to be near-final approval earlier this year. Key Takeaways Why the Bill Is Stuck The Clarity Act is designed to draw a firm line between digital assets regulated by the Securities and Exchange Commission (SEC) and those overseen by the Commodity Futures Trading Commission (CFTC). The House passed the legislation last July, but the Senate has yet to follow suit. The sticking point is a clause addressing stablecoin rewards. A draft version of the bill would bar crypto platforms from offering yield or rewards on U.S. dollar-pegged stablecoins. Lawmakers backing the restriction argue that such incentives resemble interest-bearing bank deposits without the same regulatory safeguards. Stablecoins like Tether’s USDT and Circle’s USDC are pegged 1:1 to the U.S. dollar and widely used across crypto trading and payments. Ripple recently entered the segment with RLUSD, adding further industry interest in how the final rules take shape. Traditional banks are concerned that if exchanges continue to offer higher returns on stablecoins, depositors could shift funds away from the banking system. Standard Chartered’s global head of digital assets research, Geoff Kendrick, has warned that if the stablecoin market expands to $2 trillion, banks in developed economies could see as much as $500 billion in deposits migrate by 2028. Crypto executives counter that banning rewards would unfairly tilt the playing field. Last month, Brian Armstrong announced that Coinbase had withdrawn support for the Senate draft, stating: Ripple’s Push Amid Its SEC Fight Garlinghouse has been a vocal advocate for regulatory clarity, particularly as Ripple continues its high-profile legal battle with the SEC over XRP. A prior federal court ruling determined that XRP itself is not a security in certain secondary-market transactions, a decision widely viewed as a partial victory for Ripple. For Ripple, passage of the Clarity Act would cement clearer jurisdictional boundaries and reduce the risk of future enforcement actions based on regulatory ambiguity. Garlinghouse acknowledged that compromise will be necessary, urging both industries to accept a workable solution rather than hold out for ideal terms. He said the legislation was “very close” to approval before talks broke down earlier this year. White House Pressure and April Timeline Negotiations have reportedly intensified in recent weeks. According to industry participants, the White House has pushed stakeholders to resolve differences before the spring recess. U.S. Treasury Secretary Scott Bessent recently criticized what he described as “recalcitrant actors” resisting compromise, warning that a significant drain of bank deposits could impair lending to small businesses, agriculture, and real estate. Another high-level meeting is expected this week to revisit the stablecoin yield provision. Prediction market Polymarket currently places the odds of passage at around 60%, suggesting cautious optimism among traders. Garlinghouse’s 80% estimate is more bullish than market pricing, but it reflects growing momentum behind a deal. If lawmakers can bridge the final gap over stablecoin rewards, the Clarity Act could mark the most comprehensive U.S. crypto framework to date. For a market weighed down by prolonged regulatory uncertainty, April may prove decisive.
How Crypto Payments Work: A Comprehensive Guide
Explore the mechanics of crypto payments: from blockchain technology to wallet security. Learn advantages, challenges, and how to accept crypto payments.
Fees Associated with Crypto Debit Cards
Explore the world of crypto debit cards and uncover the hidden fees! Learn how to choose a card that suits your needs without breaking the bank.
Top 7 KYC Challenges in the Crypto Space
Explore the unique challenges of KYC compliance in the crypto space. Learn how to establish trust and security in this emerging frontier.