On January 31, 2025, the XRP Ledger implemented a significant amendment aimed at improving regulatory compliance for its Automated Market Maker (AMM). This change was approved by over 90% of validators and allows for the integration of clawback tokens, including Ripple's dollar-pegged stablecoin RLUSD, into AMM pools.
The clawback feature enables issuers to reclaim tokens from users' wallets under specific conditions, enhancing liquidity and trading options on the XRP Ledger's decentralized exchange (DEX). This update is expected to bolster decentralized finance (DeFi) activity on the network, which has already seen over $1 billion in swap volumes since the AMM functionality was introduced in March 2024, with January alone accounting for over $400 million in trades.