The XRP Ledger activated its XLS-85 amendment on Feb. 12, extending native escrow functionality beyond XRP (XRP) to all Trustline-based tokens and Multi-Purpose Tokens, a move that RippleX said enables secure, conditional on-chain settlement for assets ranging from stablecoins to real-world assets.
What Happened: XRPL Escrow Expansion
Until now, the XRPL's built-in escrow mechanism worked only with XRP. The XLS-85 amendment removes that limitation by upgrading the existing EscrowCreate, EscrowFinish and EscrowCancel transaction types to support all tokens issued on the network.
"From stablecoins like RLUSD to Real World Assets, the XRPL now supports secure, conditional, on-chain settlement for all assets," RippleX stated.
Token issuers retain control over whether their assets can be escrowed through issuer-level flags, preserving existing compliance and governance structures. The upgrade follows the activation of Permissioned Domains on XRPL earlier this month, another step aimed at broadening institutional use cases.
The change opens potential applications including token vesting schedules, institutional settlement workflows and conditional stablecoin payouts.
Also Read: Analysts Split On Whether Aster Mainnet Rally Can Outlast Unlock
Why It Matters: Institutional Readiness
The amendment does not directly increase demand for XRP or create additional supply constraints. Its significance lies in what it signals about the network's direction.
If stablecoin providers, real-world asset platforms or institutional players adopt XRPL because of native token escrow support, transaction volume and active accounts could grow — and XRP remains the ledger's gas and reserve asset. Higher network usage would mean greater demand for XRP through fees and reserve requirements, though that outcome depends entirely on real adoption.
Crypto markets frequently price in narrative and positioning alongside actual usage, and upgrades like XLS-85 position XRPL as a more direct competitor to Ethereum (ETH) and other token platforms in the tokenized finance space.