XRP Ledger Signals Escrow Revolution to Accelerate Institutional Capital Inflows—Will It Dominate the Financial Mainstream?

▲ XRP / AI-generated image

The XRP Ledger has completed an institutional-grade infrastructure upgrade by expanding its escrow functionality to all tokens, marking a milestone move aimed at attracting large-scale capital inflows from institutional investors.

According to cryptocurrency media outlet BeInCrypto on February 13 (local time), the XRP Ledger officially implemented the Token Escrow (XLS-85) amendment on the mainnet, significantly enhancing network performance. The upgrade extends the native escrow feature—previously limited to XRP—to all tokens issued on the ledger. Experts say this move will serve as a decisive step in elevating the decentralized exchange to professional-grade specifications capable of meeting institutional demands.

To facilitate the update, Ripple’s development team released rippled version 3.0.0 and proposed amendments addressing technical issues related to token escrow. Notably, improvements were made to precisely adjust an issuer’s locked amounts and total supply when releasing escrowed multipurpose tokens. Financial institutions can now eliminate accounting uncertainties that may arise during asset issuance and management, enabling more transparent fund operations.

The market views this expansion as a core step in the long-term blueprint to build an institutional decentralized finance ecosystem on the XRP Ledger. Institutional investors have been able to begin allocating capital on the XRP Ledger in earnest since February 12, a development expected to positively impact network-wide liquidity and ecosystem activation. Ripple’s development team plans to continue focusing on mainnet upgrades that reflect the complex requirements of financial institutions.

XRP is currently hovering near the key psychological support level of $1.34, searching for new direction amid fragile price action. While technical indicators remain in bearish territory, whether the escrow upgrade translates into tangible institutional inflows will be a critical factor in any potential rebound. Investors are closely monitoring on-chain asset movements and shifts in institutional positioning as they assess upcoming market developments.

This upgrade goes beyond a simple feature addition and is expected to become a significant milestone in solidifying the XRP Ledger’s status as a global financial infrastructure. As transparency and efficiency improve across the network, more companies are likely to adopt the XRP Ledger for real-world asset tokenization and payment systems, potentially laying the groundwork for long-term value appreciation.

Disclaimer: This article is for investment reference purposes only, and we are not responsible for any investment losses resulting from it. The content should be interpreted for informational purposes only.