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 right this moment 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 by way of 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 Property, the XRPL now helps safe, conditional, onchain settlement for all property.” 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 Property, 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 in order that the issued token will be escrowed. For MPTs, the issuer should set the Can Escrow and Can Switch flags at issuance in order that these tokens can each be held in escrow and transferred when launched. One notable constraint: issuers can’t create escrows utilizing their very own issued tokens, though they will obtain escrowed tokens as recipients.
Authorization gating additionally issues. If a token requires authorization, the sender should be pre-authorized by the issuer earlier than creating an escrow, and should be approved to obtain the tokens again if an expired escrow is canceled—no matter who submits the cancellation. Individually, the recipient should be pre-authorized earlier than an escrow will be accomplished.
XRPL helps time-based, conditional, and mixture escrows. The move is anchored round EscrowCreate to lock funds, EscrowFinish to launch them when circumstances are met, and EscrowCancel to return funds as soon as an escrow expires. For token escrows particularly, an expiration time is obligatory.
The characteristic shouldn’t be free. XRPL.org flags that escrow “requires two transactions” and that Crypto-Circumstances improve charges. Whereas the ledger helps Crypto-Circumstances, it presently solely helps PREIMAGE-SHA-256, and achievement verification raises EscrowFinish prices. The documentation offers a concrete minimal: an EscrowFinish with a achievement requires a minimum of 330 drops of XRP plus a further quantity primarily based on achievement measurement, with the system scaling if charge settings change.
RippleX highlighted use instances 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 accessible to the token layer, helpful for structured settlement, compliance-shaped flows, and predictable launch circumstances 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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