XRP Ledger retries upgrade that lets banks split payment and compliance duties
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
The XRP Ledger is preparing to activate the PermissionDelegationV1_1 upgrade on October 5, provided at least 28 of its 35 trusted validators continue to support it. This feature enables accounts to delegate specific duties such as payments or customer approval without relinquishing full control of their keys. The revised upgrade fixes a security flaw in the earlier version that risked unauthorized XRP balance drains through invalid transaction fees.
Why it matters
The upgrade allows accounts to split authority by task, which could be significant for entities like stablecoin issuers needing separate compliance and payment functions without exposing full control keys. The source does not explicitly comment on broader market or policy impacts but implies relevance for regulated stablecoin operations.
Key context
PermissionDelegationV1_1 is the second attempt to introduce delegated authority after the initial version was withdrawn due to a vulnerability allowing attackers to drain XRP balances via unauthorized transaction fees. The issue arose because the original code verified permissions before transaction signatures, leading to possible fee charges on invalid transactions. The fixed version modifies this logic to prevent fees being deducted before signatures are validated.
Key numbers and entities
There are 35 trusted validators in the XRP Ledger network, with at least 28 needed to approve the upgrade. The activation countdown began on September 21, with 29 validators initially supporting it. The upgrade is included in xrpld version 3.3.0 software.
What remains unclear
The source does not specify how widely the feature will be adopted once activated or provide details on potential user or industry reactions. It also does not outline any direct regulatory or competitive implications beyond mentioning APAC’s role in stablecoin regulation in a related report.