According to David Schwartz, Ripple is working on an identity solution allowing enterprises to comply with global sanctions.
In a recent discourse, David Schwartz, the CTO at Ripple, shared insights on the forthcoming Automated Market Maker (AMM) functionality on the XRP Ledger. Additionally, he shed light on an identity resolution mechanism that Ripple is developing, enabling enterprises to comply with international sanctions regulations.
Schwartz discussed these exciting forthcoming features during a conversation with King Solomon, CEO of Genfinity, at the 2023 CoinDesk Consensus event held in Austin, Texas.
The full interview is on @GenfinityIO but this is a great snippet for you folks on twitter.
David Schwartz CTO of @Ripple
Pioneer of the #XRPL $XRP
Full Video Link here: https://t.co/VdH1wZpWBd
Damn this was crazy, watch the snippet below. pic.twitter.com/m6Jw1veF6Q
— 🌋King Solomon🌋 (@IOV_OWL) May 1, 2023
Ripple Working on an Enterprise Identity Solution
Expanding on the subject, Schwartz confirmed that Ripple is actively engaged in creating an identity solution that will enable enterprises to adhere to global sanctions regulations while harnessing the promise of DeFi.
He noted: “Enterprises will not participate in any financial system where they might inadvertently accept money from or send money to a sanctioned entity. Because the penalties are just so high, they just won’t do it.”
Per a report released by Verafin last month, there has been a growing trend in the imposition of fines on entities that fail to comply with stringent anti-money laundering (AML) and sanction compliance measures. The report revealed that in 2022, the U.S. Treasury imposed $886 million in fines on several entities, while the SEC imposed fines up to $101 million.
Schwartz emphasized that Ripple’s primary focus for 2023 will center around devising a solution to address enterprises’ compliance challenges while dealing with decentralized finance. “Our 2023 emphasis is going to be around removing barriers to enterprise adoption of DeFi technology,” he declared.
The Native XRPL AMM
As previously reported by The Crypto Basic, Schwartz expressed his enthusiasm for the Automated Market Maker (AMM) feature last week, citing it as the most thrilling addition to the XRPL in a while. Although Schwartz acknowledged that the forthcoming AMM solution would bring liquidity to the network, he clarified that it wasn’t the aspect that piqued his interest the most.
According to him, the upcoming native AMM feature holds the most promise in terms of the potential yield that users can generate by providing liquidity through loaning their cryptocurrencies and stablecoins, as well as the trading strategies that the AMM can carry out on behalf of token holders.
NFTs on XRPL Continue to Garner Attention
David Schwartz also drew attention to the remarkable adoption rate of NFTs on the XRPL since the introduction of XLS-20 in October last year. The XRP Ledger has witnessed 151,422 NFT trades since the native NFT functionality was added to the network six months ago, with a total trade volume of 21.9 million XRP.
The network currently has five prominent NFT marketplaces, with onXRP leading the way in trade volume, having processed 11.2 million XRP in NFT trades since its launch. As reported earlier by The Crypto Basic, onXRP facilitated the second-largest NFT sale on the XRPL two weeks ago.