A major shift is unfolding on the XRP Ledger, one that expands the foundational capabilities of its escrow system far beyond its original scope.
What was once a feature reserved exclusively for XRP is now being unlocked for a much broader range of tokenized assets. This change comes with the introduction of the Token Escrow amendment, known as XLS-85.
Vet (@Vet_X0), a validator on the XRP Ledger (XRPL), summarized the significance of this development in a recent post. He explained that the amendment opens escrow capabilities to issued tokens and multi-purpose tokens (MPTs).
This means stablecoins, such as RLUSD or USDC, which recently launched on the XRPL, tokenized real estate, money market funds, and even meme coins, can now be securely placed in escrow.
Big change for Escrow on the XRP Ledger!
Currently only XRP can be escrowed. This amendment opens it up for issued and multi purpose tokens.
Think of escrow for stablecoins like USDC and RLUSD, memes, US treasuries, Real Estate, Money Market Funds etc https://t.co/8wDqTUhIVx pic.twitter.com/qrgjUhHfLb
— Vet (@Vet_X0) June 25, 2025
From XRP-Only to a Universal Solution
In May, Ripple CEO Brad Garlinghouse confirmed that major advancements were coming to the XRPL, and this new amendment fits the bill. The XRPL’s native escrow function has long been limited to XRP, allowing holders to lock tokens and release them only when specific conditions were met.
XLS-85 extends this functionality to Trustline-based tokens and MPTs, creating an entirely new set of possibilities for developers, enterprises, and users operating within the ecosystem.
Use Cases for Token Escrows
The practical use cases unlocked by token escrow are substantial. Conditional payments become fully automated, allowing funds to be released only upon the successful completion of services or milestones.
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Time-locked distributions are now possible for project teams, grant disbursements, or airdrops, with tokens vesting incrementally over predefined schedules. This can introduce greater accountability and trust within token-based projects.
Decentralized exchanges and marketplaces also benefit from escrow by enabling secure token holding for trade settlements and collateral within decentralized finance (DeFi) protocols. Vet noted that it also supports trustless peer-to-peer swaps, eliminating counterparty risk.
Additionally, escrow enhances digital rights management by ensuring tokenized assets like licenses or collectibles are only released when payment or contract conditions are fulfilled.
A New Standard for XRPL Utility
The implementation of XLS-85 marks a pivotal evolution for the ledger. The XRPL is becoming a DeFi powerhouse through these upgrades, and by enabling escrow for other tokens in the ecosystem, the ledger positions itself to support an even wider range of real-world financial applications.
This development shows a clear shift toward broader utility and enterprise-grade solutions. With escrow no longer limited to XRP, the ledger’s potential use cases expand dramatically, setting the stage for the next chapter in its growth.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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