Developers of the XRP Ledger are preparing five amendments for the upcoming xrpld 3.3.0 release, with proposals designed to improve privacy, atomic settlement and the onboarding of institutional users.
Jazzi Cooper, head of product at RippleX, outlined the planned changes in a post on X. The software release is expected next week, although its publication will not automatically activate any of the amendments.
“XRPL has already proven it can support tokenized assets at scale. Now it’s time to put these assets to use: global transfers, trading, collateralizing, and settling,” Cooper said.
The five proposals cover confidential transactions for Multi-Purpose Tokens (MPTs), transaction batching, delegated permissions, sponsored fees and reserves, and adjustable token properties.
Each amendment must be approved through the XRP Ledger’s validator-governed process. Proposals that affect transaction processing generally require support from at least 80% of trusted validators for two consecutive weeks before they can take effect.
The planned upgrade follows the activation of fixCleanup3_2_0 on 29 July. Data from XRPScan showed that 30 of the 35 participating trusted validators supported the amendment, representing 85.71%.
That change made version 3.2.0 the minimum compatible software release for the updated mainnet rules. Nodes running version 3.1.0 or earlier became amendment-blocked and were no longer able to follow validated ledgers correctly.
Privacy and settlement proposals
The Confidential MPT amendment would introduce native privacy features for Multi-Purpose Tokens on the XRP Ledger. It would use elliptic-curve encryption and zero-knowledge proofs to hide token balances and transaction amounts while still allowing authorised parties to verify the information.
Issuers and holders would be able to keep transaction details private from the wider public while giving access to a nominated third party, such as an auditor or regulator. The aim is to combine commercial confidentiality with the reporting and compliance obligations faced by institutions.
“For financial institutions, privacy is often a prerequisite for using public blockchain infrastructure,” Cooper said.
The proposal could appeal to US-regulated banks, broker-dealers and asset managers considering public blockchain infrastructure for tokenised assets. Such institutions often require transaction confidentiality but must also retain information that can be examined by auditors or regulators.
The amendment itself would provide a technical function at network level. It would not amount to regulatory approval for any particular financial product or activity.
The proposed Batch amendment would allow transactions involving several accounts to be processed atomically within a single ledger. If one part failed, the complete batch would fail; if successful, all components would be completed together.
That could support delivery-versus-payment arrangements, in which an asset transfer and the related payment occur simultaneously. It may also reduce settlement risk in more complex transactions involving multiple accounts or assets.
Permission Delegation would allow account holders to grant limited transaction rights without handing over control of their signing authority. An institution could, for example, permit a treasury or operations team to carry out specified tasks while retaining separate control of its issuance keys.
Sponsored Fees and Reserves would target another barrier for new users. The amendment would allow a bank, issuer or platform to pay transaction fees and account reserves on behalf of users.
“Users continue to own their accounts and keys, while removing one of the biggest onboarding hurdles: requiring every participant to acquire and manage XRP before they can interact with the network,” Cooper said.
The fifth proposal, Dynamic MPT, would give issuers the ability to change selected token properties after issuance. Possible adjustable fields include transfer fees, metadata and other predefined features.
At present, issuers may have to create a replacement token when important terms need to be altered. Dynamic MPT is intended to provide limited flexibility without requiring a completely new issuance, although the final specifications will determine which properties can be changed.
The proposals come as the XRP Ledger records increased activity involving tokenised real-world assets. Data from RWA.xyz showed the network added about $2.6bn in real-world asset value during the six months to 26 July, excluding stablecoins.
That placed the XRP Ledger second among the networks tracked by RWA.xyz for net real-world asset inflows. BNB Chain led with about $3bn, while Stellar followed with roughly $2.1bn. The XRP Ledger’s combined distributed and represented real-world asset value reached approximately $4.38bn.
Validator operators will be able to assess the amendments as their specifications are published. Each proposal will need to secure the required level of consensus independently after xrpld 3.3.0 has been released.
