Recent amendments to the XRP Ledger aim to enhance privacy for institutions managing tokenized real-world assets, totaling over $530 million.

A proposed amendment for the XRPL seeks to allow institutions to encrypt token balances and transfer amounts while still permitting selective access for issuers, auditors, and regulators.

By Shaurya Malwa | Edited by Cheyenne Ligon 30 min ago 2 min read Make preferred on

  • The latest release of the XRP Ledger software, version 3.3.0, includes a proposed feature called “Confidential Transfers.” This would enable institutions to encrypt balances and payment amounts on specific tokenized assets while keeping the accounts and token types visible.
  • The upgrade is designed to cater to the expanding market for tokenized real-world assets on XRPL, which currently has around $1.38 billion issued, inclusive of significant contributions from RLUSD, Ondo, VERT Capital, Archax, and Societe Generale.
  • Confidential Transfers, along with five other amendments aimed at institutional users, such as tools for batching transactions, fee sponsorship, and permission delegation, need at least two weeks of 80% validator support before they can be implemented.

A privacy feature designed for institutional finance is set to be voted on within the XRP Ledger, which already holds over $530 million in tokenized assets.

The newly released XRPL version 3.3.0 introduces six proposed amendments, with the “Confidential Transfers” feature particularly targeting institutional users. This amendment aims to allow encryption of balances and payment amounts associated with Multi-Purpose Tokens, a format that Ripple is advocating for various financial assets such as funds and bonds.

The goal is to enable institutions to transfer tokens without disclosing the amount of each transaction. While accounts and the type of token remain visible, the specific balances and amounts can be kept private. This ensures that the ledger can verify transaction totals without revealing sensitive data, using a cryptographic method that confirms validity without disclosing actual figures.

Ripple has been actively working to integrate XRPL into the tokenized finance sector throughout 2026. For instance, Aviva Investors recently launched a tokenized share class for its U.S. Dollar Liquidity Fund on the ledger after announcing the initiative with Ripple in February.

Data from on-chain aggregator RWA.xyz indicates that approximately $1.38 billion in real-world assets have been tokenized on XRPL, including $845.7 million from RLUSD. Ondo contributes $212.6 million, VERT Capital adds $116.1 million, and Archax has $55.4 million, with Societe Generale at $11.6 million.

Tokenized real-world assets issued on the XRP Ledger. (Shaurya Malwa/CoinDesk)

This leaves over $530 million in tracked tokenized assets beyond RLUSD, although the market is still largely focused on a few key issuers.

The initial rollout of Confidential Transfers is limited. Holders must opt into the encrypted format, and it currently supports direct MPT payments between accounts, excluding trades on XRPL's built-in exchange, escrow, or checks.

The other five proposed amendments also target the same institutional audience. The batching feature can combine up to eight transactions, including an all-or-nothing option where every transaction must succeed or none do. The sponsorship feature allows one account to cover another's fees and reserve requirements, eliminating the necessity for new users to hold XRP before making transactions.

Permission Delegation enables an account to authorize another party to execute only specified transaction types, granting limited authority to fund administrators without transferring full control. Dynamic MPT allows issuers to modify certain properties of a token post-issuance.

Version 3.3.0 also includes various fixes and, as reported by XRP Ledger Operations, reduces memory usage by 10% to 15% while enhancing node synchronization speed with the network.

None of these features are currently active. For amendments to go live on the XRPL, they must receive continuous support of at least 80% from trusted validators for a two-week period.

The upcoming vote will determine the fate of Confidential Transfers. Following that, a critical test will be whether institutions like Aviva or Ondo, already issuing assets on XRPL, opt to utilize this feature to obscure their balances and transfer amounts instead of keeping them public.

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