XRP Ledger Activates Native On-Chain KYC/AML Credentials
On September 4, 2025, the XRP Ledger activated its Credentials amendment (XLS-0070), introducing a native on-chain identity layer aligned with W3C Verifiable Credentials. The update adds three new transactions—CredentialCreate, CredentialAccept and CredentialDelete—plus a Credential ledger entry, extended DepositPreauth and a CredentialIDs field in payments and escrows.
Developers and issuers can now issue, store and verify KYC/AML credentials directly on the XRP Ledger without off-chain middleware. Businesses enforce protocol-level compliance by requiring valid credentials for deposits and payments, enhancing auditability and privacy. This upgrade also paves the way for Permissioned Domains and a Permissioned DEX, targeting regulated institutional use.
By meeting TradFi standards, the XRP Ledger aims to attract institutional adoption and support Ripple’s goal of tokenizing 10% of global assets by 2030. At press time, XRP traded around $2.83, reflecting market optimism about increased institutional flows and improved network utility.
Bullish
The activation of native on-chain KYC/AML credentials on the XRP Ledger is bullish for XRP. In the short term, traders may respond positively to enhanced compliance features that reduce counterparty risk and attract institutional liquidity. The requirement for on-chain credentials streamlines verification, cutting operational costs for businesses and boosting transaction volumes. Over the long term, the upgrade lays the groundwork for permissioned domains and a DEX tailored to regulated institutions, reinforcing confidence in the ledger’s infrastructure. This institutional focus supports Ripple’s vision of tokenizing 10% of global assets by 2030, likely driving sustained demand for XRP as the bridge currency.