Seasoned researcher and banking expert Dr. Marius Jurgilas, former officer of English, Norwegian and Lithuanian central banks, proposed an unusual endgame goal for modern automated market making engines (AMMs). These systems will be able to facilitate swaps between financial and non-financial tokenized assets.
Extracting value from tokenized assets: Case for XRPL AMM?
On-chain AMMs will be able to facilitate exchanges between financial and non-financial assets. For instance, users would be able to swap fractions of artworks by Rembrandt for stocks of Chinese companies. Dr. Marius Jurgilas shared this forecast during a discussion with Ripple’s Director of Product Marketing Kirsten Rommel and Head of Liquidity Products Brad Chase.
Recent @Ripple Webinar:
We’ll hold pieces of Rembrandt & have our toes in a Chinese company, with no need for cash, only exchange liquid #tokenized assets.Using an AMM (coming #XRPL) we’re more than just buyers & sellers but engage in pools to extract value from tokenized… pic.twitter.com/GhxiJ4E7BO
— 🌸Crypto Eri 🪝Carpe Diem (@sentosumosaba) September 2, 2023
The debate happened during the recent Ripple webinar on digital asset usage. Ripple enthusiast and community activist Crypto Eri (@sentosumosaba on X, formerly known as Twitter) shared a video today on Sept. 2, 2023.
In this hypothetical mechanism, users will be able to move value from one asset to another with no need for cash or other “regular” medium of exchange. Such on-chain systems will allow citizens of the world to become market makers and liquidity providers instead of being buyers and sellers, Dr. Jurgilas concluded.
As covered by U.Today previously, Ripple Inc. works together with Lithuania-based SUPER HOW? on Axiology, an XRPL-based project. The partners teamed up to advance the research of using DLTs for central bank digital currencies (CBDC) in the European Union.
XRP Ledger inches closer to viable AMM launch with XLS-30d approval
The partnership program is a part of DLT Pilot Regime Regulation adopted by the EU financial authorities.
That said, XRPL-based automated market makers (AMMs) would be of paramount importance for global tokenization in both financial and non-financial assets segments. Right now, the XRPL AMM design proposed in the XLS-30d upgrade is being stress-tested by RippleX in the devnet and testnet.
The testing procedures will be underway until full stability of the project is reached. Then, a referendum of the XLS-30d proposal mainnet activation will be initiated.
Meanwhile, RippleX added XRPL AMM functions support to three client programming libraries (xrpl.js, xrpl-py and xrpl4j) and the xrpl.org block explorer.
