AMMClawback amendment officially goes live on the XRP Ledger – What is it?
The XRP Ledger (XRPL) has officially implemented the AMMClawback amendment. The launch enables token issuers to reclaim assets under some detailed conditions. According to blockchain explorer XRPScan, the amendment went live on Jan 30, 2025, at around 07:53:12 PM UTC.
Prior to the Thursday launch, XRPScan had the AMMClawback amendment’s two-week activation countdown through its official X account on January 16. The feature will reportedly enhance security and regulatory compliance by allowing issuers to retract tokens in cases of fraud, legal enforcement, or misuse.
According to XRP documentation, the clawback function is not enabled by default. To activate it, issuers must send an “AccountSet transaction” to activate the setting dubbed as “Allow Trust Line Clawback.” However, accounts with existing tokens on the Automated Market Maker pool cannot enable the feature.
Moreover, the feature must be activated before setting up any trust lines, offers, escrows, payment channels, checks, or signer lists. Once enabled, the function is irreversible, permanently granting the issuer the ability to claw back assets from trust lines.
Ripple USD expands to XRPL AMM pools
The AMMClawback amendment also marks a major shift in RLUSD’s usability within the XRP ecosystem. Previously, RLUSD was primarily limited to trading on centralized exchanges using traditional order books.
Now, with the new amendment, the stablecoin can be integrated into the XRP Ledger’s decentralized exchange (DEX) and AMM pools. Adding RLUSD to the pools could grow liquidity across the XRP Ledger. In addition, traders and liquidity providers will have more avenues to trade with RLUSD.
For those unfamiliar with the significance of this amendment, the AMMClawback feature on #XRPL now enables issuers of specific tokens to reclaim (or "claw back") tokens under certain conditions, such as fraud prevention, regulatory compliance, or legal enforcement.
This move… https://t.co/Qq1eifx9NM
— Luke Thomas (@DEarthshaker) January 30, 2025
Former Ripple executive Emi Yoshikawa expressed enthusiasm about the XRP/RLUSD pair’s inclusion in the XRPL DEX AMM.
“Excited to see the XRP/RLUSD pair in the XRPL DEX AMM. Congrats to the XRPL community!” Yoshikawa wrote in a January 30 X post. “This amendment will allow tokens with clawback clauses, such as RLUSD, to be used in XRPL AMM. Active trading of the XRP/RLUSD pair is expected in the future.”
As of the time of this publication, the XRPL cumulative market cap, which includes both CEXs and DEXs, was $275.7 million, with both trading platforms listing more than 23,180 tokens, per data from XPmarket.
RLUSD surpasses $100 million market cap
The launch of AMMClawback comes as Ripple USD (RLUSD), Ripple’s stablecoin, surpasses a market capitalization of $100 million. In an X post on Thursday, Jack McDonald, Ripple’s Senior Vice President of Stablecoins, confirmed the milestone, noting that RLUSD reached this level just over a month after launch.
“As previously committed, we’ll be publishing a monthly independent attestation for RLUSD, in compliance with the highest regulatory standards,” denoted McDonald, echoing the company’s transparency promise that requires the RLUSD’s reserves to be audited by an independent licensed third-party accounting startup.
McDonald further explained that RLUSD is over-reserved. By analysis, it means Ripple holds more collateral than the total circulating supply. The Ripple SVP also revealed that the company maintains $6M in excess reserves to handle its stablecoin’s backing.
“Ripple strictly maintains reserves of highly liquid, low-risk assets to ensure our ability to fully meet redemptions,” he concluded.
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AMMClawback amendment officially goes live on the XRP Ledger – What is it?
The XRP Ledger (XRPL) has officially implemented the AMMClawback amendment. The launch enables token issuers to reclaim assets under some detailed conditions. According to blockchain explorer XRPScan, the amendment went live on Jan 30, 2025, at around 07:53:12 PM UTC.
Prior to the Thursday launch, XRPScan had the AMMClawback amendment’s two-week activation countdown through its official X account on January 16. The feature will reportedly enhance security and regulatory compliance by allowing issuers to retract tokens in cases of fraud, legal enforcement, or misuse.
According to XRP documentation, the clawback function is not enabled by default. To activate it, issuers must send an “AccountSet transaction” to activate the setting dubbed as “Allow Trust Line Clawback.” However, accounts with existing tokens on the Automated Market Maker pool cannot enable the feature.
Moreover, the feature must be activated before setting up any trust lines, offers, escrows, payment channels, checks, or signer lists. Once enabled, the function is irreversible, permanently granting the issuer the ability to claw back assets from trust lines.
Ripple USD expands to XRPL AMM pools
The AMMClawback amendment also marks a major shift in RLUSD’s usability within the XRP ecosystem. Previously, RLUSD was primarily limited to trading on centralized exchanges using traditional order books.
Now, with the new amendment, the stablecoin can be integrated into the XRP Ledger’s decentralized exchange (DEX) and AMM pools. Adding RLUSD to the pools could grow liquidity across the XRP Ledger. In addition, traders and liquidity providers will have more avenues to trade with RLUSD.
For those unfamiliar with the significance of this amendment, the AMMClawback feature on #XRPL now enables issuers of specific tokens to reclaim (or "claw back") tokens under certain conditions, such as fraud prevention, regulatory compliance, or legal enforcement.
This move… https://t.co/Qq1eifx9NM
— Luke Thomas (@DEarthshaker) January 30, 2025
Former Ripple executive Emi Yoshikawa expressed enthusiasm about the XRP/RLUSD pair’s inclusion in the XRPL DEX AMM.
“Excited to see the XRP/RLUSD pair in the XRPL DEX AMM. Congrats to the XRPL community!” Yoshikawa wrote in a January 30 X post. “This amendment will allow tokens with clawback clauses, such as RLUSD, to be used in XRPL AMM. Active trading of the XRP/RLUSD pair is expected in the future.”
As of the time of this publication, the XRPL cumulative market cap, which includes both CEXs and DEXs, was $275.7 million, with both trading platforms listing more than 23,180 tokens, per data from XPmarket.
RLUSD surpasses $100 million market cap
The launch of AMMClawback comes as Ripple USD (RLUSD), Ripple’s stablecoin, surpasses a market capitalization of $100 million. In an X post on Thursday, Jack McDonald, Ripple’s Senior Vice President of Stablecoins, confirmed the milestone, noting that RLUSD reached this level just over a month after launch.
“As previously committed, we’ll be publishing a monthly independent attestation for RLUSD, in compliance with the highest regulatory standards,” denoted McDonald, echoing the company’s transparency promise that requires the RLUSD’s reserves to be audited by an independent licensed third-party accounting startup.
McDonald further explained that RLUSD is over-reserved. By analysis, it means Ripple holds more collateral than the total circulating supply. The Ripple SVP also revealed that the company maintains $6M in excess reserves to handle its stablecoin’s backing.
“Ripple strictly maintains reserves of highly liquid, low-risk assets to ensure our ability to fully meet redemptions,” he concluded.
Cryptopolitan Academy: How to Write a Web3 Resume That Lands Interviews - FREE Cheat Sheet
Read More