Beyond XRP: How XRPL Is Upgrading TradFi With New Token Escrow

The XRP Ledger has extended its escrow capabilities beyond XRP itself. With the TokenEscrow amendment (XLS-85) now live, issued assets on XRPL — such as stablecoins, IOUs and tokenized instruments — can be locked under verifiable on-chain conditions. This upgrade enables broader DeFi use cases and brings institutional-grade asset workflows directly onto the protocol level without external smart contracts or custodians.

“It never was so easy to be optimistic”

Until now, only the XRP coin could be locked in escrow. With TokenEscrow activated at ledger #102204929, developers and institutions can now securely time-lock, condition-lock or multiparty coordinate any IOU or Multi-Purpose Token (MPT) on the ledger. The change is technical, but its impact is immediately practical.

XRP contributor Vet described the amendment as a game-changer for XRPL, turning it from a single-asset network into a foundation for multitoken financial tools. With support for stablecoins, meme assets and tokenized instruments, the infrastructure now enables decentralized alternatives to traditional settlement flows. 

In his words, the environment is one where optimism is based on protocol upgrades, not speculation, and where XRPL is like an opportunity market for deploying real financial resources.

Escrow on XRPL allows funds to be locked with clear, protocol-level conditions: for example, releasing funds after a specific time or only once a cryptographic condition is met. With XLS-85, this functionality now applies to issued tokens like RLUSD, meme coins and tokenized physical assets. These locked assets can bypass the need for centralized escrow agents, paving the way for automated OTC deals, vesting schedules and compliance-embedded financial structures.

TokenEscrow is not a flashy feature; it is infrastructure. For TradFi players testing stablecoins or tokenized treasuries, this amendment removes a critical barrier to smart custodial workflows, all without smart contracts.