Circle Is Using DEX On XRP Ledger to Issue USDC. Here’s how

XRPL validator Vet recently highlighted a distinctive approach Circle has taken in issuing USDC on the XRP ￰0￱ validator stated that Circle is using a decentralized exchange (DEX) on the XRP Ledger to issue USDC, calling the process unique and worth ￰1￱ an attached video, Vet provided an in-depth explanation of how this method works and how it differs from traditional token creation mechanisms on the XRP ￰2￱ is using the decentralized exchange (DEX) on the XRP Ledger to issue $USDC . That's unique, but how does it work? ￰3￱ — Vet (@Vet_X0) September 1, 2025 Traditional Token Creation on XRPL Vet first outlined the standard way tokens are created on the XRP ￰4￱ explained that two accounts are required: an issuer account and a minter ￰5￱ issuer initiates a payment to the minter, which results in the creation of new ￰6￱ example, if the issuer sends a payment of 100 RL USD to the minter, the minter gains a balance of 100 RL USD, while the issuer’s account shows a debt of 100 RL ￰7￱ simple and direct mechanism is the same method Ripple uses when issuing tokens, making it a straightforward process of payment-based token ￰8￱ Role of the Centre Consortium Moving on to Circle’s model, VET explained that the process involves the Centre Consortium, an entity co-founded by Circle and Coinbase to oversee the issuance and governance of ￰9￱ consortium is designed to manage requirements such as restricting minting rights to authorized members, adding or removing members, and setting limits on the amount of USDC to be minted by individual ￰10￱ rules ensure that only vetted organizations within the consortium can issue USDC, while preventing unauthorized ￰11￱ Token System: USDC and USDC Allow The consortium introduced a dual-token system involving two accounts on the XRP Ledger: one issuing USDC and another issuing USDC ￰12￱ distinction is ￰13￱ Allow is restricted to consortium members and used for minting purposes, while USDC itself remains open to the wider ￰14￱ noted that this dual system enables Circle to enforce membership rules while still keeping the stablecoin freely accessible to users outside the ￰15￱ the DEX for Minting Unlike the traditional payment method, Circle employs the XRP Ledger’s decentralized exchange to facilitate token ￰16￱ issuer creates a DEX offer that allows one USDC Allow to be exchanged for one USDC at a one-to-one ￰17￱ a consortium member issues 1,000 USDC Allow, they can then trade it on the DEX for 1,000 ￰18￱ mechanism effectively transfers USDC to the consortium member, while the issuer account shows a corresponding ￰19￱ structuring issuance through the DEX, Circle ensures that the minting process is transparent and entirely ￰20￱ and Control Vet emphasized that this approach offers both transparency and ￰21￱ Allow ensures that only authorized members can participate in minting, while USDC remains unrestricted for general ￰22￱ use of the decentralized exchange adds a layer of transparency, since all transactions and offers are verifiable ￰23￱ method, though more complex than the traditional payment-based model, provides a system that aligns with Circle’s need for controlled issuance while preserving accessibility for the broader ￰24￱ are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 In his explanation, Vet concluded that Circle’s decision to issue USDC via the XRP Ledger’s DEX is an innovative approach that balances governance requirements with the benefits of ￰25￱ leveraging the DEX, Circle ensures transparency in the minting process while maintaining strict controls through USDC ￰26￱ structure demonstrates how the XRP Ledger’s native functionalities can be used to build flexible and secure systems for stablecoin ￰27￱ : This content is meant to inform and should not be considered financial ￰28￱ views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s ￰29￱ are advised to conduct thorough research before making any investment ￰30￱ action taken by the reader is strictly at their own ￰31￱ Tabloid is not responsible for any financial ￰32￱ us on X , Facebook , Telegram , and Google News