XRP Ledger Activates Permissioned Domains for Institutional Use

The XRP Ledger switched on a new feature called Permissioned Domains on February 4. The network approved the change after more than 80% of validators voted yes. The upgrade went live shortly after 10:00 UTC. It adds a way to create controlled areas on the public ledger. These areas only allow accounts with proper identity checks to take part. Supporters say this helps banks and large firms use the ledger while meeting rules.

What Permissioned Domains Do

Permissioned Domains create special zones on the XRP Ledger. Inside these zones, only approved users can trade or move assets. Access depends on KYC or AML credentials. A domain owner can set up to 10 approved issuer pairs. This helps limit who can send or receive certain tokens.

Permissioned Domain just got activated on the XRP Ledger!

Credentials ✅

Permissioned Domain ✅

Permissioned DEX ☑️ – a few more YES votes needed.

2 out of 3 compliance building blocks are now active, for compliant DEX use by e.g Ripple Payments. pic.twitter.com/vt4jnd2ovV

— Vet (@Vet_X0) February 4, 2026

The system works with the earlier Credentials feature. That feature checks and stores identity proof. Without it, Permissioned Domains can not work. Anyone can create a domain and they can also delete it later. With time, more rule types may be added. These could match local laws in different regions. In simple terms, the ledger stays public. But parts of it can now follow stricter rules. That gives more control without moving to private chains.

How the Amendment Passed

The amendment is known as XLS-80. Developers added it to the network code earlier this year. To go live, it needed at least 80% support for two weeks. Validators reached that level in late January. They kept voting yes until the countdown ended.

The final support crossed 90%. This shows strong agreement across the network. It also builds on the earlier Credentials upgrade. Together, they form two key blocks for compliant trading. Another change called Permissioned DEX is close to approval too. It sits just under the needed level. Once it passes, all three parts will be active.

Why It Matters for Institutions

Ripple works with over 300 partners. Many of them worry about rules and risk. With Permissioned Domains, they can use the built-in DEX in a safer way. David Schwartz said this helps remove barriers for big players. Banks can trade on the ledger but limit who joins their pools. They don’t need a private network. They still get speed and low fees. This also helps real world assets. Tokenized bonds or funds need strict access control. Permissioned Domains give that control while staying on a public chain.

What Comes Next

The Permissioned DEX upgrade may activate soon. When it does, regulated trading becomes easier. Institutions could swap assets on-chain while following local laws. This doesn’t mean an instant price jump. It’s more like laying roads before cars arrive. With time, more firms may test the system. Currently, the XRP Ledger is adding tools for rule based use. It wants to serve open users and regulated finance. This update is one more step in that direction.