A transformative upgrade is revolutionizing the XRP Ledger (XRPL), significantly expanding the utility of its escrow system. The newly introduced Token Escrow amendment (XLS-85) extends escrow functionality beyond XRP to include tokenized assets like stablecoins, real estate tokens, and even meme coins—a milestone for the XRPL ecosystem.
From XRP-Exclusive to Multi-Asset Escrow
Previously, the XRPL’s native escrow feature supported only XRP, allowing users to lock tokens under predefined conditions. With XLS-85, this capability now encompasses:
- Trustline-based tokens (e.g., RLUSD, USDC)
- Multi-purpose tokens (MPTs)
- Asset-backed tokens (real estate, treasuries)
Vet (@Vet_X0), an XRPL validator, highlighted how this amendment unlocks escrow for diverse assets, enabling secure conditional transactions across DeFi, tokenized markets, and peer-to-peer swaps.
"Think of escrow for stablecoins like USDC and RLUSD, memes, US treasuries, Real Estate, Money Market Funds, etc."
— Vet (@Vet_X0)
Practical Applications of Token Escrow
- Conditional Payments
Automate fund releases upon service completion or milestone achievement, reducing counterparty risk. - Time-Locked Distributions
Schedule vesting for team tokens, grants, or airdrops, enhancing transparency. - DeFi & Marketplaces
Secure trade settlements, collateral management, and trustless P2P swaps. - Digital Rights Management
Ensure tokenized licenses/collectibles are released only after payment verification.
👉 Explore how XRPL’s upgrades are reshaping DeFi
XRPL’s Evolution as a DeFi Powerhouse
This amendment aligns with Ripple CEO Brad Garlinghouse’s vision for XRPL as an institutional-grade blockchain. By supporting multi-asset escrow, the ledger:
- Strengthens its infrastructure for institutional DeFi
- Expands real-world financial use cases
- Boosts developer and enterprise adoption
FAQ Section
Q: Which tokens are eligible for escrow post-XLS-85?
A: Trustline-based tokens (e.g., stablecoins) and MPTs, excluding XRP (already supported).
Q: How does token escrow benefit DeFi protocols?
A: It enables secure collateral locking, automated settlements, and reduces reliance on intermediaries.
Q: Is this upgrade live?
A: Yes, following validator approval. Check the XRPL’s amendment status for adoption metrics.
Conclusion
XLS-85 marks a paradigm shift for the XRPL, transforming its escrow system into a universal tool for tokenized economies. This upgrade underscores the ledger’s growing role in institutional DeFi and blockchain-based finance.
👉 Stay updated on XRPL’s latest innovations
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Conduct independent research before making investment decisions.
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