The XRP Ledger has activated the AMMClawback amendment, allowing issuers to recover tokens after they have been sent. This change opens new opportunities for Ripple's stablecoin, RLUSD, in AMM pools.
What is the AMMClawback Amendment?
The activation of the AMMClawback amendment in the XRP Ledger allows issuers to recover tokens after they are sent. The relevance of this activation is that if a recipient is involved in illegal activities, the issuer can easily reclaim the tokens.
Impact on RLUSD Stablecoin
Before the activation of the AMMClawback amendment, using RLUSD outside centralized exchange ecosystems was impossible. Enabling RLUSD in AMM pools has created new opportunities. The XRP/RLUSD pool is expected to provide more liquidity for Ripple's stablecoin. Emi Yoshikawa, a former executive at Ripple, expressed excitement about the development, appreciating the XRPL community.
Importance for Regulatory Compliance
Jack McDonald, an executive at Ripple, emphasized the company's commitment to global regulatory standards, stating that RLUSD complies with the highest regulatory requirements. Experts believe the new feature aligns well with global financial regulatory requirements. Now, if RLUSD is linked to fraud, Ripple can easily reclaim the tokens.
The activation of the AMMClawback amendment on the XRP Ledger marks a significant step in improving liquidity and regulatory compliance for Ripple's RLUSD stablecoin. This update creates new growth opportunities while ensuring financial security.
