Ripple Just Expanded Escrow Beyond XRP – Here’s What That Could Unlock

RippleX has launched Token Escrow (XLS-85) on the XRP Ledger mainnet. The update allows trustline-based tokens (IOUs) and Multi-Purpose Tokens (MPTs) to be locked, scheduled, and conditionally released natively on-chain. A shift that expands how stablecoins, RWAs, and institutional assets can operate within the network.

The feature is now live following the formal specification under XLS-0085, marking another incremental but meaningful upgrade to XRPL’s evolving infrastructure stack.

What’s Actually Changing on XRPL

XRPL’s escrow functionality has always applied only to XRP, enabling time-based or condition-based release of funds without third-party smart contracts.

As of today, XLS-85 extends that native logic to issued tokens and MPTs. Meaning that any asset built on XRPL can now use escrow primitives at the protocol level.

Technically, this introduces new ledger objects that allow token balances to be locked under defined conditions, including time locks or crypto-condition fulfillment.

Moreover, it operates within XRPL’s core transaction engine and not via external smart contracts. Therefore, it preserves the network’s deterministic execution model and low-cost settlement design.

Importantly, this development is relevant for stablecoins such as RLUSD and tokenized real-world assets. With XLS-85, issuers can structure conditional releases, vesting schedules, collateral locks, and treasury operations directly on XRPL.

The update also supports institutional-grade use cases like automated settlement flows, escrow-backed OTC trades, programmable grant distributions, and tokenized debt instruments.

Ripple’s Expanding Institutional Toolkit

XLS-85 doesn’t exist in isolation. It builds on a broader series of XRPL upgrades, including MPTs, AMM integration, sidechain experimentation, and tokenization initiatives.

Therefore, it seems like Ripple is positioning itself as a specialized settlement layer for tokenized assets rather than a general-purpose DeFi chain.

By enabling native escrow for IOUs and MPTs, XRPL strengthens its appeal for financial institutions that require predictable execution, conditional settlement, and compliance-friendly asset management tools.

The more these primitives are extended beyond XRP, the more XRPL evolves into a neutral asset settlement rail rather than a single-asset network.

Indeed, it’s a shift that’s crucial to attract capital flows that prioritize operational certainty.

What It Could Mean for XRP in the Long Term

Protocol upgrades like XLS-85 are not short-term catalysts on their own. However, long-term value for XRP could be based on network usage, settlement volume, and institutional onboarding.

If escrow functionality materially increases token issuance and RWA activity on XRPL, transactional demand for XRP as a bridge asset and fee token could gradually expand.

Athough price reaction in the short-term might still be sentiment-driven, every extension of XRPL’s institutional solutions supports XRP’s value proposition.

Indeed, it’s now tied to settlement infrastructure rather than speculative cycles.

XRP Price Today

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