The XRP Ledger (XRPL) successfully activated the XLS-85 amendment on February 12, 2026, fundamentally expanding its native escrow functionality. Previously limited solely to the XRP token, the upgrade now extends secure, programmable escrow capabilities to all Trustline-based tokens (IOUs) and Multi-Purpose Tokens (MPTs) on the network.
RippleX, the developer arm, announced the activation, stating, "From stablecoins like RLUSD to Real World Assets, the XRPL now supports secure, conditional, on-chain settlement for all assets." The upgrade modifies the existing EscrowCreate, EscrowFinish, and EscrowCancel transaction types. Crucially, token issuers retain control, as assets must explicitly enable escrow through issuer-level flags, preserving existing compliance and governance frameworks.
This is a significant architectural shift, transforming XRPL into a platform where any asset can benefit from native time-lock and conditional release features. Analysts highlight this paves the way for new institutional use cases, including token vesting schedules, institutional settlement workflows, treasury management, conditional stablecoin payouts, and structured financial products built directly on the ledger.
The update follows closely on the heels of the recent activation of Permissioned Domains, further signaling XRPL's push to cater to institutional users. While the upgrade does not directly create additional lockups for XRP itself, its long-term price impact is tied to broader network effects. Increased token issuance, transaction volume, and active accounts on XRPL could drive higher demand for XRP, which serves as the network's gas and reserve asset.
At the time of reporting, XRP was trading at $1.36, down 1.35% over the past day, facing broader market headwinds.
