On Friday, the XRP Ledger successfully activated a significant amendment, introducing the “clawback” feature, which was approved by over 90% of validators. This amendment allows token issuers to reclaim or “claw back” tokens from user wallets under certain conditions, such as in cases of fraud, regulatory compliance, or tokens being mistakenly sent to wrong addresses.
This change directly benefits Ripple’s RLUSD stablecoin, as it can now be listed and traded directly on the XRP Ledger’s decentralized exchange (DEX), boosting liquidity and enhancing trading options. The update is expected to play a crucial role in increasing decentralized finance (DeFi) activities on the network.
The clawback feature also improves the regulatory compliance of XRP Ledger’s Automated Market Maker (AMM) pools. With this update, tokens with the clawback functionality can now be used, while the “AMMDeposit” transaction type was modified to prevent frozen tokens from being added to the AMM pools.
XRP Ledger’s DEX operates by utilizing liquidity pools, rather than traditional order books, for trading. Since the introduction of the AMM functionality through the XLS-30D amendment in March 2024, the platform has processed over $1 billion in swaps. Notably, January 2025 marked a milestone, with the DEX processing over $400 million in trades, reflecting growing interest and activity.
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