TLDR
- RippleX has launched the XLS-85 upgrade on the XRP Ledger, expanding escrow capabilities beyond XRP to include Trustline-based tokens.
- The new feature supports the locking of stablecoins, tokenized real-world assets, and Multi-Purpose Tokens directly on the XRP Ledger.
- XLS-85 enables secure vesting, automated token swaps, and conditional payments, making transactions more efficient and secure.
- Institutional use cases benefit from the upgrade with improved support for treasury controls, collateral locks, and automated settlements.
- The XLS-85 update strengthens the XRP Ledger’s position in institutional DeFi by enabling secure escrow for tokenized bonds and other assets.
RippleX has introduced an important update to the XRP Ledger (XRPL) with the launch of Token Escrow (XLS-85) on the mainnet. This update broadens the scope of the ledger’s escrow feature, which was previously limited to XRP. Now, it includes Trustline-based tokens and Multi-Purpose Tokens, making the platform more versatile for institutional and tokenized asset transactions.
XRP Ledger Enhances Token Management with XLS-85
RippleX’s latest upgrade, XLS-85, significantly expands the functionality of the XRP Ledger. The escrow feature is now capable of locking more than just XRP. This update allows Trustline-based tokens, including stablecoins and tokenized assets, to be secured on-chain directly via the XRP Ledger. RippleX’s development team highlighted that this move provides a more secure and efficient alternative to custom solutions previously used for locking stablecoins and tokenized assets.
Token Escrow (XLS-85) is now live on XRPL Mainnet!
This feature extends native escrow functionality beyond XRP to all Trustline-based tokens (IOUs) and Multi-Purpose Tokens (MPTs).
From stablecoins like RLUSD to Real World Assets, the XRPL now supports secure, conditional,… pic.twitter.com/DNCJxZsoK2
— RippleX (@RippleXDev) February 12, 2026
The new update also extends the ledger’s escrow capabilities to Multi-Purpose Tokens, enhancing flexibility for projects within decentralized finance (DeFi). As a result, XRP Ledger becomes a more attractive option for projects aiming to tokenize real-world assets such as bonds and equities. RippleX confirmed that the XLS-85 upgrade “positions the XRP Ledger as a more enterprise-friendly platform,” meeting growing demands from institutional players in the blockchain space.
Use Cases for the New Token Escrow Feature
XLS-85’s introduction is designed to address several key use cases within the blockchain and cryptocurrency space. One of the primary benefits is secure vesting and grants, where projects can schedule the release of tokens or distribute them based on specific conditions. The ability to lock tokens in escrow simplifies this process, offering greater security and control over token distributions.
Another notable application of XLS-85 is in automated transactions. It facilitates peer-to-peer token swaps and conditional payments, ensuring that transactions only occur when predefined conditions are met. The feature also enhances institutional finance use cases, supporting treasury controls, collateral locks, and automated settlements for larger financial transactions, such as tokenized bonds and other digital assets.
XRP Ledger’s Role in Institutional Finance and Asset Tokenization
The launch of XLS-85 comes at a crucial time as traditional financial institutions explore tokenized assets. The ability to lock these assets with escrow functionality on the XRP Ledger strengthens its position within institutional DeFi. RippleX’s development update emphasizes that the new escrow feature is essential for securing institutional-grade tokenized assets, which are increasingly seen as a viable alternative to traditional financial products.
Furthermore, this upgrade brings new levels of flexibility to digital rights management and tokenized real-world assets. It paves the way for more complex use cases, such as content unlock systems and tokenized licenses, making the XRP Ledger an even more versatile blockchain platform.
