How XRPL Permissioned Domains Could Shape Institutional XRP Use

• XRPL has announced Permissioned Domains via XLS-80, following 91%+ validator support, adding credential-based access control.
• It adds new ledger objects and transactions for approved users to operate in compliant zones.

XRP Ledger (XRPL) is set to activate Permissioned Domains today, after XLS-80 amendment secured 91% validator support. The change adds a credential-gated access layer to the public network. It is designed for organizations that must restrict participation based on compliance rules while still using the shared ledger for settlement and transaction finality. 

Instead of moving activity to private networks, institutions can keep workflows on the public ledger but limit who can interact inside a domain. Domain operators define participation by listing accepted credentials. 

The credentials contained in accounts are recognized as members, minimizing the manual procedures of onboarding into a domain.

The amendment is built on the XLS-70 Credentials framework, which introduces credential objects that can be issued and verified. With Permissioned Domains, credential issuers and domain owners become key operational parties. The design assumes these entities will follow defined procedures for issuance, monitoring, and revocation. 

CNF previously noted that Billiton Diamond, working with Ctrl Alt and supported by Ripple, plans to tokenize about $280 million in polished diamonds on the XRP Ledger. Billiton also plans to pursue listings for the tokenized diamonds on primary and secondary markets.

Architecture and Rollout Details for XRPL’s XLS-80

XLS-80 introduces a new PermissionedDomain ledger object and a set of management transactions. These are PermissionedDomainSet to configure domains and PermissionedDomainDelete to remove domains. The change is foundational and does not provide an end-user product by itself. 

XLS-80 also establishes the foundation on which subsequent functions can demand limited involvement, including permissioned decentralized exchanges or regulated tokenized asset platforms constructed in support of verified users.

Additionally, the model relies on the integrity of credential issuers and domain administrators. It also accounts for risks tied to compromised credentials and misuse by bad actors. Mitigation will be handled through governance, application controls, and operational monitoring rather than the ledger alone.

For institutional use, the change centers on enabling regulated participation on a public blockchain. If institutions deploy applications that use Permissioned Domains for compliant access, XRPL activity could expand through verified flows. That would increase usage of the ledger’s settlement and fee functions, where XRP remains the native asset used for transaction costs and on-ledger payments.

Last month, we covered XRP Treasury Firm Evernorth’s plan to raise more than $1 billion to expand an institutional XRP treasury using lending, liquidity provision, and DeFi-based yield on the XRPL.

At the time of reporting, the XRP price fell 16% over the past seven days during a wider market pullback. The altcoin was trading near $1.59, with a 0.23% decline over the past 24 hours.