The XRP Ledger (XRPL) activated its Permissioned Domains feature on February 4, 2026, following overwhelming validator support. The XLS-80 amendment, which introduces the functionality, received backing from more than 91% of validators, surpassing the required 80% supermajority threshold in late January and entering a standard two-week activation window.
Permissioned Domains represent a foundational infrastructure upgrade designed to bridge public blockchain benefits with institutional regulatory needs. They are managed, credential-gated environments that operate on the public XRPL, allowing domain owners to define access rules based on a list of accepted credentials. Accounts holding these credentials become members automatically. The system is built upon the existing XLS-70 Credentials framework and introduces new technical components like the PermissionedDomain ledger object and management transactions (PermissionedDomainSet, PermissionedDomainDelete).
The proposal's documentation explicitly states this amendment does not provide end-user functionality itself but enables future features, such as permissioned decentralized exchanges or regulated applications, to be built on top of it. It also addresses security considerations, noting reliance on trust in credential issuers and domain owners, with risks like compromised credentials needing mitigation at the application level.
The launch occurs against a backdrop of significant challenges for XRP and the XRPL ecosystem. The XRP token price fell to approximately $1.50, marking its lowest level since November 2024 and representing a 57% decline from its all-time high. Over the past seven days, XRP dropped 16%, trading at $1.59 at the time of the initial report.
Network metrics show strain: the Total Value Locked (TVL) in XRPL's DeFi protocols dropped over 20% in 30 days to $55 million across 21 protocols. Daily DEX volume was a modest $145,820. The XRP burn rate has stagnated since August 2024, with only 335 tokens burned on February 3. Furthermore, XRP-focused exchange-traded funds (ETFs) saw outflows, including $404k on a recent Monday following a $92 million loss the prior Thursday.
Despite the downturn, some areas show growth. The stablecoin supply on XRPL increased to over $417 million, with Ripple USD (RLUSD) emerging as a top industry stablecoin. Real-world asset (RWA) tokenization on the network has surged 271% in the last 30 days to a represented value exceeding $1.47 billion, accelerated by a single $129 million diamond tokenization by Ctrl Alt.
Analysts suggest that while Permissioned Domains strengthen XRPL's utility and institutional appeal—potentially making it more attractive for entities like traditional financial institutions—they are unlikely to act as an immediate price catalyst for XRP. The amendment does not alter XRP's supply, fee structure, or direct demand dynamics. The potential benefit is indirect: if the upgrade leads to increased institutional adoption and on-chain activity (like permissioned DEXs or tokenized asset platforms), XRP could see higher network usage as the native asset for fees and settlement. The real test will be whether institutions deploy live applications that drive sustained activity.
