The XRP Ledger recently implemented a key amendment to its system, introducing the “clawback” feature, following a validator vote that saw overwhelming support, with more than 90% in favor. This new feature enables token issuers to reclaim or “claw back” tokens from user wallets under specific conditions, such as in cases of fraud, regulatory compliance needs, or tokens sent to incorrect addresses.
Ripple’s RLUSD stablecoin, which supports this clawback functionality, can now be traded directly on XRP Ledger’s decentralized exchange (DEX). This opens up new liquidity channels and is expected to enhance decentralized finance (DeFi) activity on the network, providing more trading options for users.
In addition to facilitating regulatory compliance, the update also ensures that tokens with the clawback feature can now be integrated into XRP Ledger’s Automated Market Maker (AMM) pools. It also prevents frozen tokens from being deposited into the pools by updating the “AMMDeposit” transaction type.
XRP Ledger’s DEX operates by using liquidity pools instead of traditional order books, and with the introduction of the AMM functionality through the XLS-30D amendment in March 2024, the platform has seen impressive growth, processing over $1 billion in swaps. January 2025 alone saw over $400 million in trading volume, highlighting the increasing popularity and utilization of the network.
