Ripple Aims to Conquer $24 Billion RWA Sector with New Permissioned Layer

On February 4, the XRP Ledger (XRPL) successfully launched its much-anticipated Permissioned Domains feature, gaining approval from 91% of validators. At first, this decision might seem paradoxical, as it involves a public blockchain implementing 'permissioned' sections. Yet, a closer examination of the technology reveals the functionality of this upgrade.

Permissioned Domains introduce an access-control object that operates directly on the ledger, allowing designated parties to manage access within specific areas of the blockchain. This innovation aims to facilitate regulatory compliance while still leveraging the benefits of a decentralized system.

Ripple’s strategy to infiltrate the $24 billion Real-World Assets (RWA) market hinges on this new integration. By enabling businesses and institutions to operate within a controlled environment on the XRPL, Ripple seeks to bridge the gap between traditional finance and blockchain technology.

Despite its controversial reception, primarily due to concerns around decentralization, Ripple’s advancements could position it as a frontrunner in the RWA sector. As the market continues to evolve, the implications of the Permissioned Domains will be closely monitored by industry observers and participants alike.