A seasoned researcher and banking expert, Dr. Marius Jurgilas, who has worked for the central banks of England, Norway, and Lithuania, recently shared a groundbreaking concept during a webinar hosted by Ripple. This new idea revolves around automated market making (AMM) on the XRP Ledger (XRPL).
According to Dr. Jurgilas, AMMs on the XRP Ledger could revolutionize asset exchange by allowing users to trade any tokenized assets without relying on cash or a common medium of exchange. During the webinar, Dr. Jurgilas explained that this technology would enable swaps between various financial and non-financial assets.
Additionally, Dr. Jurgilas emphasized that such on-chain AMMs would empower users to become active participants in markets rather than mere buyers and sellers. Users would have the opportunity to act as market makers and liquidity providers, thus opening up new avenues for extracting value from tokenized assets.
XRPL AMM: A Key Component For Global Tokenization
Dr. Jurgilas highlighted the potential of these AMM systems in facilitating the adoption of central bank digital currencies (CBDCs) in the European Union. He revealed that Ripple is collaborating with a Lithuanian company called SUPER HOW? on a project called Axiology.
The aim of this project is to utilize distributed ledger technology (DLT) for CBDC research and development. The Axiology project falls under the DLT Pilot Regime Regulation, an initiative by EU financial authorities to foster innovation and experimentation with DLT in the financial sector.
These AMM systems are expected to play a crucial role in global tokenization, encompassing financial and non-financial assets. Currently, RippleX is testing these AMM designs proposed in the XLS-30d upgrade within devnet and testnet environments. This upgrade will introduce new features and functions to XRPL, enabling AMM systems’ operation.
Once fully tested and unstable, the XLS-30d upgrade will undergo evaluation by XRPL validators before being activated on the mainnet. Additionally, RippleX has incorporated support for these AMM functions into three client programming libraries (xrpl.js, xrpl-py, xrpl4j) as well as the xrpl.org block explorer. Developers and users can use these tools to interact with these AMM systems.
These AMM systems hold the promising potential to revolutionize value exchange and creation on blockchain platforms. Allowing users to seamlessly swap tokenized assets without relying on cash or a common medium of exchange, these systems open new possibilities for global tokenization.
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