The XRP Ledger has activated Token Escrow (XLS-85) on mainnet on Feb.12, extending the community’s native escrow mechanics past XRP to Trustline-based tokens (IOUs) and Multi-Function Tokens (MPTs). The modification was enabled in the present day with 88% consensus (30/34 validators) and was launched in rippled v2.5.0 underneath the XLS-85 specification.
Escrow, However For Each Asset On XRP Ledger
RippleX framed the change as a broadening of XRPL’s settlement primitives from one native asset to the broader token stack through X:
“Token Escrow (XLS-85) is now stay on XRPL Mainnet! This characteristic extends native escrow performance past XRP to all Trustline-based tokens (IOUs) and Multi-Function Tokens (MPTs). From stablecoins like RLUSD to Actual World Belongings, the XRPL now helps safe, conditional, onchain settlement for all belongings.” It added: “The toolbox for Institutional DeFi simply bought greater.”
Token Escrow (XLS-85) is now stay on XRPL Mainnet!
This characteristic extends native escrow performance past XRP to all Trustline-based tokens (IOUs) and Multi-Function Tokens (MPTs).
From stablecoins like RLUSD to Actual World Belongings, the XRPL now helps safe, conditional,… pic.twitter.com/DNCJxZsoK2
— RippleX (@RippleXDev) February 12, 2026
XRPL.org describes escrow in acquainted phrases, then emphasizes what the ledger automates: “Historically, an escrow is a contract between two events to facilitate monetary transactions… The XRP Ledger takes escrow a step additional, changing the third celebration with an automatic system constructed into the ledger.” With the TokenEscrow modification, that very same strategy now applies to fungible tokens, not simply XRP.
For Belief Line Tokens, the issuing account should allow the Permit Belief Line Locking flag so the issued token will be escrowed. For MPTs, the issuer should set Can Escrow and Can Switch flags at issuance so these tokens can each be held in escrow and transferred when launched. One notable constraint: issuers can not create escrows utilizing their very own issued tokens, although they will obtain escrowed tokens as recipients.
Authorization gating additionally issues. If a token requires authorization, the sender have to be pre-authorized by the issuer earlier than creating an escrow, and have to be licensed to obtain the tokens again if an expired escrow is canceled—no matter who submits the cancellation. Individually, the recipient have to be pre-authorized earlier than an escrow will be completed.
XRPL helps time-based, conditional, and mixture escrows. The circulate is anchored round EscrowCreate to lock funds, EscrowFinish to launch them when situations are met, and EscrowCancel to return funds as soon as an escrow expires. For token escrows particularly, an expiration time is necessary.
The characteristic is just not free. XRPL.org flags that escrow “requires two transactions” and that Crypto-Situations improve charges. Whereas the ledger helps Crypto-Situations, it presently solely helps PREIMAGE-SHA-256, and success verification raises EscrowFinish prices. The documentation provides a concrete minimal: an EscrowFinish with a success requires a minimum of 330 drops of XRP plus a further quantity primarily based on success dimension, with the system scaling if payment settings change.
RippleX highlighted use circumstances spanning vesting and grants, conditional funds and OTC-style swaps, treasury workflows like authorized holds and collateral, and tokenized rights and RWA-style unlocks. The frequent thread is a local, on-ledger “lock till X” mechanism now out there to the token layer, helpful for structured settlement, compliance-shaped flows, and predictable launch situations with out counting on a third-party custodian or purely off-chain coordination.
At press time, XRP traded at $1.35.
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