Ripple Activates “Clawback” Function – XRP DEX Should Benefit From It

A feature called “Clawback” has been activated in the Ripple network. This is intended to meet regulatory requirements. It is also hoped that the decentralized XRP exchange will continue to gain traction.

In the decentralized finance (DeFi) sector, Ripple (XRP) has so far only played a minor role. A technological development should help to change this. At the weekend, the “Clawback” feature was activated in the Ripple network XRPL, which is intended to make certain DeFi use cases for XRP and RLUSD more secure. Reference is also made to regulatory requirements that are met with “Clawback”.

Translated, “Clawback” means reclaim. Now transactions that go to the decentralized crypto exchange (DEX) integrated in XRPL are to be given the attribute “Clawback”. This makes it possible to correct accidentally incorrect transactions or even freeze funds. Experts see the “Clawback” feature for XRP and the Ripple stablecoin RLUSD as a safety net that meets the needs of DeFi users.

Ripple CEO Brad Garlinghouse recently highlighted during the presentation of quarterly results that the XRPL DEX broke the $1 billion mark in trading volume in the fourth quarter of 2024. The stablecoin RLUSD, launched in December, has contributed to the growing interest in DeFi at Ripple . Developers are also working on enabling smart contracts in the ecosystem. This is where Ripple has some catching up to do; so far, only swaps are available natively on its own DEX, and technological detours have to be taken for more complex strategies such as crypto loans.

Conclusion: Ripple wants to promote DeFi for XRP and RLUSD

In the vote on “Clawback,” a good 90 percent of node operators eligible to vote voted in favor of activating the feature, so it enjoys support. Now it remains to be seen whether Ripple will actually succeed in continuing to grow in the DeFi sector. January was a record month for the Ripple DEX with a trading volume of more than $400 million in sales, and the number of new wallets for XRP and RLUSD also reached a record level of over 700,000 in the fourth quarter of 2024.

Ripple has experienced a spectacular XRP comeback since Donald Trump’s election victory , which temporarily drove the altcoin from prices of around $0.50 to over $3. However, XRP is currently feeling the effects of the recent slumps in the crypto markets and is falling back to below $2.50. More DeFi for XRP and RLUSD could also ensure that the attractiveness of the ecosystem increases thanks to the “clawback” function.

__

(Featured image by WorldSpectrum via Pixabay)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in BLCOK-BUILDERS.DE. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us