XRP Ledger to tighten permissioned token rules to attract institutional players

XRP Ledger plans to tighten rules on who can hold permissioned, regulated tokens such as stablecoins or tokenized stocks. In an upgrade named fixCleanup3_5_0, which bundles four proposals, XRP Ledger intends to remove loopholes that currently allow unapproved users to hold regulated assets without issuer approval. For some tokenized stocks, issuers want to screen whoever is buying their tokens for compliance checks, including anti-money laundering (AML) and manipulation risks. As such, a permissioned environment allows issuers to run identity checks.