XRP Ledger Strengthens Dominance in the Escrow Era… “Dumping Forces Cannot Gain Foothold”

▲ XRP (XRP) / ChatGPT-generated image

The XRP Ledger has aggressively introduced an escrow function for issued tokens, significantly enhancing transparency and security in asset management across its ecosystem.

According to cryptocurrency media outlet The Crypto Basic on February 13 (local time), the XLS-85 amendment supporting the creation of escrow for tokens issued on the XRP Ledger network has been officially activated. The update was implemented on February 12, exactly two weeks after 30 XRP Ledger validators voted in favor of the proposal on January 30, meeting the activation threshold. As a result, users can now conditionally lock not only XRP but also various fungible tokens issued on the network, including trust line tokens and multi-purpose tokens.

The activation process of XLS-85 was not without challenges. In mid-September 2025, the amendment initially reached the approval threshold with support from 29 validators. However, XRP Ledger validator Vet raised compatibility concerns with multi-purpose tokens, causing supporting votes to drop sharply to 16. The community subsequently developed a solution called fixTokenEscrowV1, which was integrated into rippled v3.0.0. After resolving the technical flaws, validator confidence was restored, ultimately leading to final approval.

To utilize the new escrow feature, token issuers must enable specific settings. Issuers of trust line tokens must activate the “Allow Trust Line Locking” flag, while multi-purpose tokens must have both the “Escrow Enabled” and “Transferable” flags activated at the time of token creation. Although issuers cannot place the tokens they issued into escrow themselves, they can receive their tokens that have been placed in escrow by others. Additionally, for tokens requiring authorization, prior approval from the issuer is required before escrow creation and completion.

The XRP Ledger supports three types of escrow: time-based, condition-based, and hybrid models combining both. In a time-based escrow, assets are released only after a specified time has passed. In a condition-based escrow, assets can be claimed only by providing specific cryptographic credentials. The hybrid model requires the correct cryptographic condition to be met after a designated time has elapsed before assets are released. These sophisticated asset control mechanisms are expected to be widely used for protecting project token allocations and executing complex financial agreements.

Following the activation, Vet commented, “The issued token escrow feature is now live on the XRP Ledger,” adding, “I’m looking forward to seeing who will be the first to place issued assets into escrow.” With various assets, including Ripple’s stablecoin RLUSD, now able to adopt more advanced operational strategies through this feature, the practicality and competitiveness of the XRP Ledger ecosystem are expected to improve further.

Disclaimer: This article is intended for informational purposes only and does not constitute investment advice. The publisher is not responsible for any investment losses incurred based on this content.