New XRP Ledger amendments target $530 million in tokenized Wall Street assets
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
CoinDesk reports that the XRP Ledger (XRPL) has released version 3.3.0, which proposes six amendments including a new "Confidential Transfers" feature. This feature would allow institutions to encrypt balances and payment amounts of certain tokenized assets while keeping account identities and token types visible. These updates target institutional users dealing with tokenized real-world assets, a market on XRPL currently worth about $1.38 billion. The amendments require at least 80% validator approval for two weeks before activation.
Why it matters
The introduction of Confidential Transfers and related institutional tools aims to enhance privacy and flexibility for tokenized financial assets on XRPL. This is significant because it supports tokenized funds, bonds, and other securities with encrypted transaction details, potentially encouraging more institutional adoption. Since over $530 million in tokenized assets are tracked outside RLUSD alone, enhanced privacy features could be pivotal for institutions wary of disclosing transaction sizes.
Key context
XRPL has been expanding its use in tokenized finance, with projects such as Aviva Investors' tokenized USD Liquidity Fund launched recently. The tokenized real-world assets on XRPL include major issuers like RLUSD, Ondo, VERT Capital, Archax, and Societe Generale. The new Confidential Transfers feature uses cryptographic proofs to validate transactions without revealing amounts, addressing privacy needs. Additional amendments propose batching transactions, sponsored fees, delegated permissions, and dynamic token property changes. None of these proposals are live until they pass the validator approval process.
Key numbers and entities
The market tracked by RWA.xyz includes $1.38 billion in tokenized real-world assets on XRPL: RLUSD holds $845.7 million, Ondo $212.6 million, VERT Capital $116.1 million, Archax $55.4 million, and Societe Generale $11.6 million. The Confidential Transfers feature potentially applies to more than $530 million in tokenized assets outside RLUSD. XRPL version 3.3.0 is the software release introducing these amendments.
What remains unclear
The source notes that these amendments still need to gain at least 80% continuous support from trusted validators over two weeks before activation, so their adoption is not guaranteed. It also remains to be seen whether institutions currently issuing tokens on XRPL will choose to enable the Confidential Transfers feature to hide balances and transaction amounts. The feature currently does not apply to XRPL's built-in exchange, escrow, or checks.