TLDR
- XRP Ledger developers have proposed four fixes to strengthen restricted token approval rules.
- The proposed changes form part of the fixCleanup3_5_0 network update.
- One fix would require issuer approval for both assets before users join automated trading pools.
- Another would prevent unapproved accounts with existing balances from receiving additional restricted tokens.
- The XRP Ledger Foundation reports no known outside exploitation of the remaining gaps.
Developers have proposed four XRP Ledger fixes to prevent restricted tokens from reaching accounts without issuer approval. They target gaps in transfer and trading checks. All four sit within fixCleanup3_5_0, a planned network update that has not taken effect.
Stablecoin and tokenized fund issuers can limit ownership to approved accounts. Approval sits on a trust line, which connects a holder to an issuer’s token. Issuers often use the checks to verify customers before transfers. The proposals would apply those checks to more transactions.
XRP Ledger Fixes Target Token Trading Gaps
One fix would block accounts from joining automated trading pools without approval for both assets. These pools allow token swaps and give participants a token representing their share. Such pools trade assets from shared reserves rather than using regular order books. The proposed rule would cover those pool shares too.
Another change closes a gap affecting trust lines with existing balances. Those accounts could previously receive more tokens without another approval check. Separately, Coinbase added support for Ripple’s RLUSD stablecoin, including transfers through the network.
Foundation Reports No Outside Exploitation
The Foundation reviewed related gaps, including NFT transfers addressed in August 2025. Hussein “Vet” Zangana, its director of community and product, said developers were examining protocol rules, not reporting cases of affected users.
Zangana said any unapproved balances came from issuers or accounts they had already authorized. The Foundation knows of no outsider exploiting the remaining gaps. It described the work as routine maintenance unrelated to any security incident.
Unapproved Holders Would Face Transfer Limits
Under the proposal, unapproved holders could only return restricted tokens to their issuer. They could not trade or send them elsewhere. A separate report on XRP Ledger account activity showed increased use this week but did not identify such transfers.
Issuers could later approve those accounts and restore normal use. “The issuer can approve the holder’s trust line at any time, which restores full use,” Zangana said. A wider rule would also cover future network features.
Validator Vote Still Required for Activation
The fixes remain outside the main software. An earlier cleanup update faced a validator delay this month. That proposal, fixCleanup3_4_0, is separate from fixCleanup3_5_0 and follows its own approval process.
Once released, fixCleanup3_5_0 needs more than 80% support from trusted validators for two consecutive weeks. Voting has not begun, and no activation date is confirmed. Current token rules remain unchanged until the update activates.
