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XRP Ledger’s Auto-Bridge Routes Some Token Trades Through XRP

The decentralized exchange can combine direct offers with offers routed through XRP when that path offers a better rate.

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Two token discs sit beside branching exchange channels / TokenPost.ai (mono)
Two token discs sit beside branching exchange channels / TokenPost.ai (mono)

The XRP Ledger’s decentralized exchange can route trades between two tokens through XRP when that path offers a better rate than a direct trade. The mechanism can also combine direct offers with offers routed through XRP, giving the asset an intermediary role in some trades.

That role depends on the available rates. Auto-bridging does not mean every trade between tokens passes through XRP.

The decentralized exchange has operated since the XRP Ledger launched in 2012. XRP is the network’s native asset.

Auto-bridging documents one use for XRP on the ledger. The mechanism alone does not establish that broader ledger activity would raise XRP’s price.

Simon Yoon

Reporter

Simon Yoon reports on blockchain technology for TokenPost. Send corrections or tips to info@tokenpost.com.

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