Raydium, a major automated market maker on Solana, has launched a permissioned AMM that controls who can trade and provide liquidity, ensuring compliance for regulated assets. Unlike traditional public pools where anyone can swap tokens or add liquidity, this new AMM uses access restrictions to meet regulatory demands.
This permissioned design builds upon Raydium’s existing constant product market maker (CPMM) framework but adds a screening layer to approve participants. It aims to serve assets that require strict oversight over who can hold or trade them, something public decentralized exchanges struggle with.
Compliance-sensitive tokens often face obstacles in permissionless environments because no easy mechanism exists to enforce trading restrictions. Raydium’s permissioned pool addresses this by gating access while preserving automated market making benefits, making it suitable for complex regulatory contexts.
This move comes as Solana’s ecosystem expands with increasing demand for trading venues that can balance decentralization with compliance. For instance, Circle recently issued another 250 million USDC on Solana, highlighting growing activity around regulated stablecoins.
Raydium’s approach could attract projects that need compliant liquidity solutions without sacrificing the efficiency of on-chain AMMs. The update complements its public pool offerings and adds a new layer of functionality for institutional and regulated participants.
