The emerging XRP Ledger ecosystem will soon have institutional DeFi thanks to Anodos, a major new player in the space.
The XRP Ledger has lagged behind its main competitors, Ethereum and Stellar, in terms of infrastructure advancements, despite being introduced in 2012 and launching several years later, respectively. As an example, Stellar network members approved the ability to use smart contracts in February. In the meantime, XRPL has held off on adding mainnet hooks.
Institutional DeFi will be introduced on XRPL by Anodos’ Paridim.
By releasing Paridim, a digital asset management and liquidity platform tailored to institutional clients, Anodos intends to introduce institutional DeFi to the XRPL ecosystem.
At the time of publication, details regarding the forthcoming project were scarce. However, rumor has it that the platform will allow institutions to take advantage of XRPL’s expanding DeFi ecosystem, which includes the recently added AMM functionality, among other appealing features. At the moment, 504 active AMM pools on XRPL have 4.5 million XRP locked up.
Pay Attention to Compliance
When institutional market participants emerge, this number could rise sharply. Even though there are still problems with regulatory gaps, especially in the US, Anodos claims that Paridim is determined to make sure that institutional adoption is completely compliant with all applicable regulations.
Despite the fact that the DeFi ecosystem as a whole has managed to stay out of legal hot water because of its decentralized structure, the biggest DEX, Uniswap, has been served with a Wells Notice by the US Securities and Exchange Commission (SEC) announcing its intent to sue the company for allegedly dealing in unregistered securities.
The SEC also suggested a regulation that would require DeFi entities that facilitate AMM transactions involving assets valued at more than $50 million to be registered, and the presentation was 247 pages long. Possible institutional investors are worried about these developments.
An Expanding Ecosystem for XRPL DeFi
The XRPL ecosystem is about to undergo phenomenal growth, thanks to developer-led innovations that have strengthened its DeFi capabilities, and Anodos has decided to launch Paridim at the same time. The AMM functionality that was introduced to the registry in Amendment XLS-30D was only activated in April.
The biggest XRP holder, Ripple, is also planning to launch multiple projects to advance the XRPL DeFi ecosystem. A proprietary lending protocol, an EVM sidechain in collaboration with Peersyst, and a proprietary stablecoin backed by the US dollar are all part of these projects. The prospects for DeFi on XRPL may improve dramatically as a result of these forthcoming events.
Much like Ripple, Anodos plans to cash in on this growth by establishing itself as an industry trailblazer in the institutional sphere. Being added to the list of dUNL validators on XRPL is Anodos’s latest indirect approval from Ripple.