The XRP Ledger (XRPL) is preparing for its next major software upgrade, with RippleX Head of Product Jazzi Cooper revealing five protocol upgrades that would give the network much more power on tokenization, institutional finance and real-world asset (RWA) adoption.
The xrpld 3.3.0 release is expected to be released next week. As with all XRP Ledger protocol changes, however, the new features will only be activated once all independent validators are approved by the network via an amendment voting process.
Announcing the new features on X, Cooper said that the XRP Ledger has already demonstrated its ability to support tokenized assets at scale and is expanding to support global transfers, trading, collateralization, and settlement.
The five amendments include Confidential MPT, Batch, Permission Delegation, Sponsored Fees and Reserves, and Dynamic MPT, which will improve the usability of the network for financial institutions and enterprise applications.
The upgrade is coming at a time when there is increasing competition between blockchain networks to attract institutional tokenization projects. Financial firms are in need of blockchain technology to tokenize traditional assets (like government bonds, real estate, equities, and private credit) for payment and to reduce costs.
Confidential MPT brings privacy to tokenized assets
One of the most interesting additions is Confidential MPT (Multi-Purpose Tokens) which makes privacy features possible with elliptic curve cryptography and zero-knowledge proofs.
The amendment allows token issuers and holders to keep the balance and transaction amount private but allow for entities such as regulators or auditors to access it when needed.
The feature addresses one of the biggest barriers preventing financial institutions from adopting public blockchain infrastructure, where transaction data is typically visible to everyone
The proposed Batch amendment provides for the ability to group multiple transactions involving different accounts into a single atomic operation.
This enables complex financial workflows, including delivery-versus-payment (DvP) settlements, to run entirely or fail together, reducing settlement risk and enhancing efficiency for institutional trading and tokenized asset transfers.
Permission Delegation improves security
Another amendment, Permission Delegation, allows for organizations to delegate very narrowly defined transaction permissions without giving up control of their primary signing keys.
The feature is designed for treasury teams and financial institutions that need to authorize routine transactions, the report says. At the same time, it allows them to maintain strict control over critical issuance and reserve accounts.
Further, the Sponsored Fees and Reserves proposal aims to simplify onboarding by allowing banks, issuers or platforms to pay XRP transaction fees and reserve requirements on behalf of their users.
This means new users can use applications on XRPL without having to buy XRP in order to sign up for or pay transaction fees – a longstanding usability obstacle for newcomers. Users would still have access to their wallets and private keys.
Dynamic MPT brings flexibility after issuance
The fifth amendment, Dynamic MPT, would allow the issuers to modify the select token properties on XRP Ledger. These include features such as transfer fees, token metadata, other predefined features after token issuance, without the need for a fresh token issuance.
Copper said: “The release is currently anticipated for next week. As always, these amendments will only activate following validator approval.” She also urged validator operators to go through the amendments which will be available as they come.
The proposed release comes just days after the XRP Ledger activated the fixCleanup3.2.0 amendment, which brought several bug fixes to vaults, lending protocol, permissioned domains, Multi-Purpose Tokens and permissioned decentralized exchange.
More than 80% of validators supported the amendment before it was activated, demonstrating the continuing involvement in the governance of the network.
Like previous upgrades, xrpld 3.3.0 will first make the proposed amendments available for voting. They will only become part of the XRP Ledger protocol after validators reach consensus, ensuring that the decentralized network, not Ripple, ultimately decides whether new features are activated.
As with all XRPL protocol upgrades, none of the proposed amendments are applied immediately after the release of the software. Validators must first approve each amendment using the decentralized governance of the network.
Once an amendment has at least 80% approval from trusted validators for two consecutive weeks, it is enabled on the XRP Ledger. This governance model is intended to make sure that new features are widely supported before they are permanently introduced.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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