Blockchain upgrades rarely make noise, but they often reshape the future quietly. While traders track charts and headlines chase volatility, the XRP Ledger continues to advance at the protocol level. This latest update targets a long-standing barrier to institutional adoption: how to support strict compliance requirements without undermining decentralization.
In a recent post on X, XRPL developer and community contributor Vet confirmed that the Permissioned Domain amendment is now active on the XRP Ledger. The activation marks a critical milestone in XRPL’s roadmap toward regulated, enterprise-grade decentralized finance.
Understanding the Permissioned Domain Upgrade
The Permissioned Domain feature allows developers to create controlled on-ledger environments where access depends on verified credentials. These domains can restrict participation to approved entities while still operating on a public blockchain. The core ledger remains open and permissionless, but specific applications can enforce rules that align with regulatory obligations.
For those interested, after the timer expires of amendment activation the XRP Ledger checks at the next flag ledger (every 256th ledger is a flag ledger )if the votes are still there and then the blockchain itself sends a so called pseudo transaction out "EnableAmendment"
this…
— Vet (@Vet_X0) February 4, 2026
This approach gives institutions the flexibility they need to interact with decentralized infrastructure without violating compliance standards. Instead of forcing regulation onto the base layer, XRPL enables optional compliance at the application level.
Building Blocks for a Compliant DEX Ecosystem
Vet explained that the Permissioned Domain joins credentials as the second of three key compliance components now live on XRPL. Credentials allow identity or compliance attestations to exist on-ledger, while Permissioned Domains define where and how those credentials apply.
The final piece, the Permissioned DEX amendment, still awaits a few additional validator approvals. Once activated, these three elements together will enable compliant decentralized exchanges on XRPL, suitable for regulated liquidity and enterprise payment flows such as Ripple Payments.
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How Amendment Activation Works on XRPL
Vet also clarified how XRPL amendments officially go live. After an amendment meets the required validator support and its activation timer expires, the ledger does not activate it instantly. The network waits until the next “flag ledger,” which occurs every 256 ledgers.
At that point, if validator votes remain in favor, the blockchain automatically issues a pseudo-transaction called EnableAmendment. That transaction formally activates the feature on-ledger. This process explains why amendments often activate shortly after, rather than exactly at, the timer’s expiration.
Why This Matters for XRP and Institutions
The activation of Permissioned Domains reinforces XRPL’s long-term strategy. Instead of competing solely on speculation or narrative, the network continues to prioritize real-world financial integration. Institutions require atomic settlement, reduced counterparty risk, and programmable compliance. XRPL now supports all three without sacrificing decentralization.
While price action may remain volatile, infrastructure progress tells a different story. As regulated capital increasingly moves on-chain, upgrades like Permissioned Domains position the XRP Ledger as a serious settlement layer for compliant, global finance.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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